Global 300mm Fab Equipment Spending to Reach Record $119 Billion in 2026, Fueled by Strong Demand for High-Performance Computing and Automotive Applications

 Korea Leads the Way, Foundry and Memory Sectors Drive Expansion

• Global 300mm fab equipment spending is projected to reach a record high of $119 billion in 2026, driven by strong demand for high-performance computing, automotive applications, and improved memory requirements.
• Korea is expected to lead global 300mm fab equipment spending in 2026, followed by Taiwan, China, and the Americas, with the foundry and memory sectors playing significant roles in the expansion.

The global 300mm fab equipment spending is expected to soar to an unprecedented level of $119 billion by 2026, after experiencing a temporary decline in 2023. This remarkable growth is primarily attributed to the surging demand for high-performance computing and automotive applications, coupled with an overall improvement in the demand for memory.

The foundry and memory sectors are poised to be major catalysts in this expansion, signaling a widespread need for semiconductor chips across various end markets and applications. These sectors will drive significant investment in 300mm fab equipment, ensuring the industry's capacity to meet the escalating demand.

In terms of regional spending, Korea is anticipated to lead the global 300mm fab equipment market in 2026. With its well-established semiconductor industry and technological prowess, Korea is well-positioned to capitalize on the increasing demand for chips. Following closely behind Korea, Taiwan, China, and the Americas are expected to contribute substantially to the global spending.

Among the different segments, the foundry sector is projected to witness the highest equipment spending. As the demand for custom-designed chips continues to surge, foundries will invest heavily in advanced manufacturing equipment to meet the diverse needs of their customers. The memory sector is also set to experience robust equipment spending, driven by the growing demand for high-capacity memory solutions in various applications, including data centers, artificial intelligence, and Internet of Things (IoT) devices.

While the foundry and memory sectors thrive, other segments may face modest growth or even decline. This suggests a shifting landscape within the semiconductor industry, with specific sectors driving the overall growth while others adapt to changing market dynamics.

In conclusion, the global 300mm fab equipment spending is poised to reach unprecedented heights in 2026, driven by the strong demand for high-performance computing, automotive applications, and improved memory requirements. Korea is expected to lead the global spending, with the foundry and memory sectors playing pivotal roles in the expansion. This remarkable growth underscores the critical importance of semiconductor chips across a wide range of industries and highlights the need for substantial investment in advanced manufacturing capabilities to meet future demands.

Source: Global 300mm Fab Equipment Spending Forecast to Reach Record $119 Billion in 2026, SEMI Reports | SEMI

Global semiconductor equipment billings rise 9% YoY to $26.8B in Q1 2023. Taiwan up 42%, China down 8%, North America soars 51%. Strong AI and automotive investments.

US Fab expansion kick in - The global semiconductor equipment billings rose 9% YoY to $26.8B in Q1 2023, despite challenging conditions. Taiwan saw 42% growth, while China dropped 8%. North America surged by 51%. Long-term investments for AI and automotive remain strong.

As an excerpt from a news release by SEMI - here are some key points from the report:

Global Semiconductor Equipment Billings - In the first quarter of 2023, global semiconductor equipment billings reached US$26.8 billion, representing a 9% increase compared to the same period in the previous year. However, billings slipped 3% when compared to the previous quarter.

Regional Billings

The data provided breaks down the billings by region and shows the quarter-over-quarter and year-over-year changes. Here are some notable regional highlights:Taiwan: Billings of $6.93 billion, with a 13% decrease compared to the previous quarter but a significant 42% increase year-over-year.

• China: Billings of $5.86 billion, reflecting an 8% decrease quarter-over-quarter and a 23% decrease year-over-year.
• Korea: Billings of $5.62 billion, showing a slight 3% decrease quarter-over-quarter but a positive 9% increase year-over-year.
• North America: Billings of $3.93 billion, indicating a substantial 51% increase quarter-over-quarter and a significant 50% increase year-over-year.
• Japan: Billings of $1.90 billion, with a 16% decrease quarter-over-quarter but no change year-over-year.
• Europe: Billings of $1.52 billion, reflecting a 4% increase quarter-over-quarter and a 19% increase year-over-year.
• Rest of World: Billings of $1.06 billion, experiencing a 20% decrease quarter-over-quarter and an 18% decrease year-over-year.

Market Outlook: Despite macroeconomic challenges and a difficult industry environment, semiconductor equipment revenue in the first quarter was robust. The long-term strategic investments needed to support major technology advancements for applications like AI (Artificial Intelligence) and automotive remain healthy.

SEMI Equipment Market Data Subscription (EMDS): SEMI offers a subscription service providing comprehensive market data for the global semiconductor equipment market. It includes monthly reports on equipment market trends, semiconductor equipment billings by region and market segments, and an outlook for the semiconductor equipment market.

https://semi.org/en/news-media-press-releases/semi-press-releases/q1-2023-global-semiconductor-equipment-billings-grow-9%25-year-over-year-semi-reports

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