It was analyzed that investment in 300mm fab equipment would continue to increase due to the recovery of the memory market and the growing demand for semiconductors for high-performance computing and automobiles.

According to the latest data from SEMI, an industry association representing the global electronics industry supply chain, global investment in 300mm fab equipment is expected to surpass $100 billion for the first time in 2025 and reach $137 billion in 2027.

This is attributed to the recovery of the memory market and the increasing demand for high-performance computing and automotive semiconductors.

"Demand for electronic products is increasing in various markets, and the launch of new applications driven by AI innovation is a factor driving increased investment in 300mm fab equipment," said Ajit Manocha, CEO of SEMI. "Furthermore, governments are promoting investment to strengthen the competitiveness of their semiconductor industries, and this trend is expected to narrow the gap between regions that have been sluggish in semiconductor investment and major Asian countries that are making massive investments."

According to SEMI's 300mm Fab Outlook report, due to government incentives and policies to internalize manufacturing facilities, China will invest $30 billion annually over the next four years, targeting the global market. It is expected to lead the growth in investment in fab equipment.

Driven by the expansion of advanced nodes for high-performance computing (HPC) and the recovery of the memory market, chipmakers in Taiwan and Korea are making aggressive investments in equipment.

Taiwan's investment in 300mm fab equipment is expected to increase from $20.3 billion in 2024 to $28 billion in 2027, ranking second in total investment volume.

South Korea is expected to take third place, rising from $19.5 billion this year to $26.3 billion in 2027.

Investment in 300mm fab equipment in North America is projected to more than double from $12 billion this year to $24.7 billion in 2027, while investment in 300mm fab equipment in Japan, Europe and the Middle East, and Southeast Asia is expected to reach $11.4 billion, $11.2 billion, and $5.3 billion, respectively, in 2027.

Investment in 300mm fab equipment in the foundry sector this year is expected to fall by 4% to $56.6 billion due to a slowdown in mature node (>10nm) investment.

On the other hand, the foundry sector is expected to experience continuous growth in the future to meet market demand for generative AI, automotive semiconductors, and advanced devices.

Investment in 300mm foundry equipment is expected to record a compound annual growth rate (CAGR) of 7.6% from 2023 to 2027, reaching a total of $79.1 billion by 2027.

Investment in the memory sector is increasing as the demand for High Bandwidth Memory (HBM) rises with the advancement of AI.

Investment in 300mm semiconductor equipment for the memory sector is expected to record an average annual growth rate of 20% from 2023 to 2027, reaching $79.1 billion in equipment investment by 2027.

DRAM equipment investment is projected to reach $25.2 billion in 2027.It is projected to show an average annual growth rate of 17.4% from 2023 to 2027, and investment in NAND is $16.8 billion, with an average annual growth rate of 29% from 2023 to 2027.

In 2027, 300mm fab equipment investments in the analog, microcomponent, optoelectronic (Opto), and discrete sectors are expected to reach $5.5 billion, $4.3 billion, $2.3 billion, and $1.6 billion, respectively.

More details on 300mm fab equipment investment can be found in SEMI’s recently published 300mm fab outlook report.