AI boom, global chip equipment sales to break records, continued growth expected in the next two years.

2025/12/31

TechNews Report

December 17, 2025

by MoneyDJ

With robust AI investment, global semiconductor (chip) manufacturing equipment sales are projected to reach a record high this year, with continued growth expected in the next two years (2026-2027), setting new records.

The Semiconductor Equipment and Materials International (SEMI) released its 2025 global chip equipment market forecast report at SEMICON Japan 2025 on December 16th. The report projects global chip equipment (new products) sales to grow by 13.7% year-on-year to $133 billion in 2025, setting a new record. Continued growth is expected in the next two years, with projected increases to $145 billion in 2026 and $156 billion in 2027, further breaking historical records.

SEMI points out that the main drivers of this continued growth in chip equipment sales are AI-related investments in advanced logic, memory, and advanced packaging technologies.

SEMI CEO Ajit Manocha stated, "Global chip equipment sales are robust, with both front-end and back-end processes expected to grow for the third consecutive year, surpassing the $150 billion mark for the first time in history in 2027. Following our mid-year forecast in July, investment supporting AI demand has been more active than anticipated, leading to an upward revision of our chip equipment sales forecast."

SEMI indicated that global sales of front-end chip manufacturing equipment (wafer Fab Equipment, WFE) are projected to increase by 11.0% year-on-year to $115.7 billion in 2025, an upward revision from the mid-year (July) forecast of $110.8 billion. This will exceed the $104 billion forecast for 2024, setting a new record. SEMI explained that the upward revision of the WFE sales forecast primarily reflects the stronger-than-expected investment in DRAM and HBM driven by AI computing demand, coupled with the significant contribution of China's continued capacity expansion to WFE demand. Driven by increased demand for advanced logic and memory, global WFE (Wireless Component Equipment) sales are projected to grow by 9.0% year-on-year in 2026 and further by 7.3% year-on-year in 2027, reaching US$135.2 billion.

SEMI stated that China, Taiwan, and South Korea are expected to maintain their positions as the top three chip equipment purchasing countries until 2027. During the forecast period (up to 2027), China is expected to maintain its leading position due to continued investment in mature processes and specific advanced nodes; however, growth is expected to slow after 2026, and sales are projected to gradually decline. In Taiwan, equipment investment is expected to remain robust in 2025 through large-scale expansion of state-of-the-art capacity. In South Korea, substantial investments in advanced memory technologies, including HBM, will support equipment sales.

In other regions, investment is expected to increase in 2026 and 2027 through government incentives, localization efforts, and expansion of special purpose product capacity.

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