SEMI forecasts semiconductor equipment sales reaching $156B by 2027
Global semiconductor manufacturing equipment sales are heading for a new all-time high, according to SEMI’s latest industry forecast. Driven largely by AI-related investments, the market is set for three straight years of growth through 2027.
This outlook signals where capital spending, technology priorities and manufacturing strength are heading. Equipment spending trends often foreshadow shifts in chip design, packaging strategies and supply chain focus across Europe and beyond.
Equipment market enters a new growth phase
SEMI expects global semiconductor equipment sales by OEMs to reach $133 billion in 2025, up 13.7% year-on-year, before climbing to $145 billion in 2026 and $156 billion in 2027. If realized, this would mark the first time the industry surpasses the $150 billion threshold.
According to SEMI, the growth is being fueled primarily by AI-driven demand, with heavy investments flowing into leading-edge logic, memory technologies such as high-bandwidth memory (HBM), and advanced packaging. Both front-end and back-end equipment segments are forecast to grow for three consecutive years.
“Global semiconductor equipment sales show robust momentum, with both the front-end and back-end segments projected to see three consecutive years of growth, culminating in total sales surpassing $150 billion for the first time in 2027,” said Ajit Manocha, SEMI president and CEO. “Investments to support AI demand have been stronger than anticipated since our midyear forecast, leading us to boost the outlook for all segments.”
Wafer fab and back-end segments gain steam
Wafer fab equipment (WFE) remains the largest segment. After hitting a record $104 billion last year, WFE sales are projected to grow 11% to $115.7 billion in 2025, helped by stronger-than-expected spending on DRAM and HBM. SEMI also points to continued capacity build-outs in China as a key contributor.
Looking further out, WFE sales are expected to rise to $135.2 billion by 2027 as chipmakers increase investments in advanced logic and memory nodes.
The back-end equipment market is also rebounding sharply. Test equipment sales are forecast to jump 48.1% in 2025, while assembly and packaging tools should see nearly 20% growth. Advanced and heterogeneous packaging, along with tougher performance requirements for AI devices, are key drivers, even as weaker consumer, automotive and industrial demand continues to weigh on some mainstream segments.
Memory, logic and regional spending trends
On the application side, foundry and logic equipment spending is projected to approach $75 billion by 2027. The growth is supported by capacity additions for AI accelerators, high-performance computing and premium mobile chips. SEMI highlights the industry’s move toward 2nm gate-all-around processes as a major investment focus.
Memory spending is set to expand even faster. NAND equipment sales could grow more than 45% in 2025. DRAM equipment spending is also expected to rise strongly as suppliers ramp HBM production.
Regionally, China, Taiwan and Korea will remain the top equipment markets through 2027. Taiwan’s spending reflects leading-edge logic expansion, while Korea’s outlays are tied closely to advanced memory. Other regions, including Europe, are expected to see rising investments from 2026 onward, supported by government incentives and regionalization efforts.
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