SEMI predicts semiconductor equipment sales to hit $156B by 2027

Global semiconductor manufacturing equipment sales are on track to reach a new all-time high, as indicated by SEMI’s latest industry forecast. The market is experiencing significant growth driven primarily by investments in artificial intelligence (AI), with projections showing three consecutive years of expansion through 2027. This forecast provides valuable insights into the direction of capital spending, technology priorities, and manufacturing capabilities within the semiconductor industry.

The outlook for equipment sales serves as a barometer for upcoming shifts in chip design, packaging strategies, and supply chain dynamics across Europe and other regions. As the semiconductor market continues to evolve, these trends offer a glimpse into the future direction of the industry and the key areas of focus for stakeholders.

Equipment market enters a new growth phase

SEMI’s projections indicate that global semiconductor equipment sales by original equipment manufacturers (OEMs) are expected to reach $133 billion in 2025, representing a 13.7% year-on-year increase. This growth trajectory is set to continue, with sales forecasted to reach $145 billion in 2026 and $156 billion in 2027. If these estimates materialize, it would mark a significant milestone as the industry surpasses the $150 billion threshold for the first time.

The surge in equipment sales is primarily fueled by the demand for AI-driven technologies, leading to substantial investments in cutting-edge logic, memory solutions such as high-bandwidth memory (HBM), and advanced packaging techniques. Both the front-end and back-end equipment segments are expected to witness sustained growth over the next three years.

“Global semiconductor equipment sales are showing strong momentum, with projections indicating three consecutive years of growth in both front-end and back-end segments. This trend is expected to culminate in total sales exceeding $150 billion in 2027,” stated Ajit Manocha, President and CEO of SEMI. The increased investments to support AI applications have surpassed earlier expectations, prompting an upward revision of the outlook across all segments.

Wafer fab and back-end segments gain momentum

The wafer fab equipment (WFE) segment remains the largest within the industry, with sales reaching a record $104 billion in the previous year. Projections suggest a further 11% growth to $115.7 billion in 2025, driven by robust spending on dynamic random-access memory (DRAM) and HBM technologies. Continued capacity expansions in China are identified as a significant contributing factor to this growth.

Looking ahead, WFE sales are anticipated to climb to $135.2 billion by 2027, reflecting increased investments by chip manufacturers in advanced logic and memory nodes. The back-end equipment market is also experiencing a notable resurgence, with test equipment sales expected to surge by 48.1% in 2025, while assembly and packaging tools are projected to grow by nearly 20%. The demand for advanced and heterogeneous packaging solutions, coupled with the evolving requirements for AI devices, are driving this growth.

Memory, logic, and regional spending trends

Within the semiconductor industry, foundry and logic equipment spending is forecasted to approach $75 billion by 2027. This growth is underpinned by capacity expansions for AI accelerators, high-performance computing, and premium mobile chips. SEMI highlights the industry’s shift towards 2nm gate-all-around processes as a key area of investment focus.

Memory-related expenditures are expected to expand at an even faster pace, with NAND equipment sales projected to grow by over 45% in 2025. Strong growth is also anticipated in DRAM equipment spending as suppliers ramp up HBM production. Regionally, China, Taiwan, and Korea are poised to remain the top equipment markets through 2027. Taiwan’s spending reflects the expansion of leading-edge logic technologies, while Korea’s investments are closely tied to advanced memory solutions. Other regions, including Europe, are expected to witness increased investments from 2026 onwards, supported by government incentives and regionalization initiatives.