Global sales of chip manufacturing equipment are expected to reach a record $125.5 billion in 2025. According to the latest mid-year forecast by SEMI, this represents a 7.4 percent increase from 2024 levels.
The growth of Global Semiconductor Equipment Sales is being driven by rising investments in advanced logic, memory, and packaging technologies as demand surges across AI, data centers, and next-gen consumer devices.
Looking ahead, SEMI projects an even more robust 2026 for Global Semiconductor Equipment Sales, with global sales expected to climb further to $138.1 billion.
Key Drivers Behind the Growth
The growth of chipmaking equipment is being fueled by a convergence of advanced technologies and demand for better computing performance.
Foundries and memory manufacturers are aggressively expanding capacity to cater to AI workloads, high-bandwidth memory applications, and smaller node geometries.
Wafer Fab Equipment Surges Ahead
Wafer fab equipment (WFE), which includes wafer processing, fab facilities, and mask/reticle equipment, is forecast to grow 6.2 percent to $110.8 billion in 2025. It’s expected to further increase to $122.1 billion in 2026.
Foundry and logic equipment sales are predicted to grow by 6.7 percent in 2025 to $64.8 billion, followed by another 6.6 percent increase in 2026. This growth is driven by production expansion at advanced nodes like 2nm and 3nm, especially for AI-optimized SoCs.
In the memory segment, NAND equipment spending is forecast to surge by 42.5 percent to $13.7 billion in 2025, continuing to $15 billion in 2026. DRAM equipment spending is also expected to grow by 6.4 percent in 2025 and 12.1 percent in 2026, following a sharp rebound in 2024.
Backend Equipment: Packaging and Test Make a Comeback
After experiencing a slowdown in 2023, back-end semiconductor equipment is set to rebound strongly. Test equipment is expected to grow by 23.2 percent in 2025 to reach $9.3 billion. Assembly and packaging equipment is also forecast to grow by 7.7 percent, reaching $5.4 billion.
The resurgence of backend tools is linked to increased complexity in chip packaging and the rise of advanced integration technologies. Heterogeneous packaging, chiplets, and 3D stacking are pushing the industry toward more sophisticated backend processes.
SEMI has been a pivotal industry association comprising companies involved in the electronics design and manufacturing supply chain.
Regional Highlights
China, Taiwan, and South Korea continue to lead global equipment investments. China is expected to remain the largest market for semiconductor equipment despite a slight decline from its peak in 2024.
Other regions, such as the Americas and Southeast Asia, are also ramping up investments as governments and private players push for more resilient supply chains.
Advanced fabs are being built not only in traditional hubs like Hsinchu and Seoul but also in the U.S., India, and Europe, where new incentives and policies are unlocking fresh investments.
What This Means for the Industry
The semiconductor equipment market’s rise is a reflection of the industry’s response to the AI-driven computing revolution.
As workloads become more data-intensive, semiconductor manufacturers are under pressure to deliver more powerful and efficient chips at faster rates.
This wave of investment in equipment is critical for enabling breakthroughs in 2nm processes, AI accelerators, high-speed memory, and next-generation packaging.
The coming years will be marked by fierce competition, technology migration, and significant infrastructure expansion across the globe.
The semiconductor industry’s outlook remains highly positive, with 2025 expected to set a new record in equipment sales.
With AI, cloud, automotive, and edge computing shaping future demand, the need for more advanced, efficient, and localized chip production is only going to intensify.
As the industry enters a new phase of global scaling, innovation in equipment and process technology will play a decisive role in determining which regions and companies lead the next generation of semiconductor breakthroughs.
