Fab equipment spending to breach $100B mark for the first time

Global spending on 300 mm fab equipment is expected to peak next year, according to Semi’s quarterly 300 mm Fab Outlook Report. This year’s spending level is relatively modest at 4 percent growth but set to increase by 24 percent in 2025 to surpass the 100-billion-dollar per year mark for the first time. The next two years will see 11 and 3 percent growth, respectively.

“The magnitude of the expected ramp of global 300 mm fab equipment spending in 2025 sets the stage for a record-setting three-year period of semiconductor manufacturing investments,” says Semi CEO Ajit Manocha. “The world’s ubiquitous need for chips is boosting spending on equipment for both leading-edge technologies addressing AI applications and mature technologies driven by automotive and IoT applications.”

China is projected to maintain its position as the top spending region until 2027, investing over 100 billion dollars in the next three years driven by its national self-sufficiency policies. However, spending is anticipated to gradually decrease from a peak of 45 billion dollars in 2024 to 31 billion by 2027.