Reported By Lee, Chen-Li（Daniel）李振麟
The rapid expansion of artificial intelligence (AI) computing continues to fuel global semiconductor capital spending, particularly in wafer manufacturing equipment. According to the latest forecast from SEMI, the global semiconductor industry association, sales of wafer fabrication equipment are expected to grow by approximately 9% year over year in 2026, reaching US$126 billion. In 2027, equipment sales are projected to rise a further 7.3% to about US$135 billion, indicating that AI-related investment remains the core driver of equipment demand.
SEMI noted that rising demand for AI, cloud computing, and high-performance computing (HPC) is accelerating capacity expansion for both advanced logic chips and memory devices. As a result, investments in leading-edge manufacturing processes and advanced memory technologies are sustaining wafer equipment spending at elevated levels, providing a strong foundation for the industry’s growth outlook.
From a regional perspective, semiconductor manufacturing remains heavily concentrated in Asia. SEMI expects China, Taiwan, and South Korea to continue ranking as the world’s top three wafer equipment investment markets through 2027. China is projected to maintain the largest overall investment scale, supported by policy incentives and efforts to strengthen its domestic semiconductor supply chain. Taiwan continues to expand advanced process capacity to meet demand from AI and high-end computing applications, while South Korea is focusing on advanced memory investments, particularly high-bandwidth memory (HBM), which plays a critical role in AI systems.
Beyond Asia, SEMI also anticipates increased wafer equipment spending in other regions during 2026 and 2027. Growth in these markets is being driven by government subsidies, supply chain localization initiatives, and capacity expansion in specialty and mature process technologies. This trend suggests that global semiconductor investment is becoming more diversified and increasingly regionally distributed.
In terms of supplier landscape, the wafer equipment market remains dominated by a small group of global leaders. ASML Holding of the Netherlands continues to be the largest equipment supplier, accounting for roughly one-quarter of total sales. Other major beneficiaries of the expansion cycle include U.S.-based Applied Materials, KLA Corporation, Lam Research, and Japan’s Tokyo Electron, all of which are seeing strong order visibility as wafer fabs ramp up capacity.
Market participants generally believe that as long as AI-driven investments in advanced manufacturing processes and high-end memory continue, the positive momentum in wafer equipment demand could extend through 2027. Overall, the ongoing AI computing expansion is not only boosting semiconductor manufacturing activity but is also providing medium- to long-term growth support for the global wafer equipment supply chain.