$400 Billion Semiconductor Investment to Reshape Global Fab Production by 2027
The global semiconductor industry is poised for a transformative period, with a projected $400 billion investment in 300mm fab equipment over the next three years. This surge, detailed in SEMI’s 300mm Fab Outlook Report, is fueled by several key factors, including the rapid adoption of artificial intelligence (AI) across sectors, particularly in data centers and edge devices, as well as the expansion of automotive and IoT applications, all of which rely heavily on semiconductors.
SEMI’s report highlights that global spending on 300mm fab equipment will steadily increase from $99.3 billion in 2024 to $140.8 billion by 2027, marking a new chapter in semiconductor manufacturing growth. According to SEMI President and CEO Ajit Manocha, the ubiquity of chips across multiple industries is set to drive unprecedented investment in both leading-edge technologies for AI and more mature technologies, such as those powering automotive and IoT innovations.
As governments and industries push for regional semiconductor self-sufficiency, this investment is not just about technology but also about global supply chain resilience. The drive for regionalization means more countries are building their own semiconductor fabs to reduce reliance on external suppliers, further boosting demand for fab equipment.
Regional Spending Trends in 300mm Fab Equipment
While the semiconductor investment wave is global, the spending is heavily influenced by regional strategies and policies. China is projected to remain the top global spender on 300mm fab equipment, investing over $100 billion through 2027. This is part of its push towards national self-sufficiency, driven by governmental policies aimed at reducing dependency on foreign technology. Despite this dominance, China’s investment is expected to taper off slightly after peaking at $45 billion in 2024.
Other regions are also ramping up their investments. The Americas is set to invest $63 billion from 2025 to 2027, focusing on expanding domestic semiconductor manufacturing capacity. Japan, Europe, and Southeast Asia will also significantly increase their investments, driven by policy incentives aimed at alleviating the global semiconductor shortage. By 2027, these regions are expected to double their fab equipment spending compared to 2024 levels.
Cutting-Edge Technologies Powering Foundry Investments
As semiconductor technology advances, the push for cutting-edge nodes such as sub-3nm and 2nm processes is set to drive a significant portion of the $230 billion in foundry equipment investments between 2025 and 2027. These new nodes are crucial for supporting high-performance computing, particularly in applications related to AI, data centers, and edge devices. The evolution toward 2nm logic processes, with advancements like gate-all-around (GAA) transistor structures and back-side power delivery, is essential for delivering both high-performance and energy-efficient solutions, which are in demand across industries.
At the same time, older node technologies, such as 22nm and 28nm, are expected to see renewed interest due to their growing use in automotive electronics and IoT devices. These more mature technologies remain integral to the semiconductor ecosystem, providing cost-effective solutions for industries that require reliable, large-scale chip production. Foundries are expected to continue expanding capacity across both cutting-edge and mature nodes to meet the diverse demands of modern applications.
Market Segments Driving Investment Growth
Within the broader investment landscape, several key market segments are emerging as dominant forces. The Logic and Micro segment is expected to lead the charge, with a projected $173 billion in investments over the next three years. This segment is critical for powering advanced computing, AI, and telecommunications applications. As the demand for faster, more efficient chips grows, so does the investment in this sector.
Close behind is the Memory segment, which is anticipated to see over $120 billion in investments by 2027. The growing need for data storage and high-speed memory is driving increased spending on DRAM and 3D NAND technologies, which are used extensively in data centers, AI systems, and personal computing devices. Specifically, DRAM investments are expected to exceed $75 billion, while 3D NAND spending will reach $45 billion, marking the start of another strong growth cycle in memory.
Other notable segments include Power-related technologies, which will see over $30 billion in investment. This sector is crucial for the automotive industry and industrial applications, where compound semiconductors are used for power management and energy efficiency. Additionally, the Analog/Mixed-signal and Opto/Sensors segments will experience robust growth, with investments projected at $23 billion and $12.8 billion, respectively, by 2027.
What’s Next for Semiconductor Manufacturing
As the semiconductor industry navigates this unprecedented wave of investment, the outlook beyond 2027 suggests continued innovation and expansion. With a projected $400 billion investment in 300mm fab equipment by 2027, the industry is positioned for sustained growth, driven by the increasing reliance on semiconductors in nearly every facet of modern life—from artificial intelligence to automotive technologies and Internet of Things applications.
Post-2027, the focus will likely shift to even more advanced semiconductor nodes, with ongoing investments in 2nm processes and other cutting-edge technologies designed to meet future demand for higher performance, energy efficiency, and miniaturization. Industries such as quantum computing and 5G telecommunications are expected to spur new rounds of investment as the global economy becomes increasingly reliant on these technologies.
Challenges surrounding the global semiconductor supply chain remain a critical concern. Governments and private companies alike are already taking steps to mitigate risks, investing heavily in regional production facilities and fostering partnerships to ensure a stable supply of semiconductors.
Sources: