Global sales for semiconductor manufacturing equipment are expected to set another all-time record by 2028, hitting $229.5 billion. This is due to continued spending in artificial intelligence, leading-edge logic, advanced memory, high bandwidth memory (HBM), testing and advanced packaging. The findings are according to the latest forecasts from SEMI in its Mid-Year Total Semiconductor Equipment Forecast – OEM Perspective.
SEMI expects global semiconductor manufacturing equipment sales to rise 23.2% to $165.9 billion in 2026 and continue growing through 2028, marking five consecutive years of growth. The market is entering a new growth cycle, driven mainly by AI- related investment in semiconductor manufacturing and capital spending.
Demand for advanced logic chips and High Bandwidth Memory (HBM) is increasing as the use of AI and HBM-based technologies expands. These applications require increasingly advanced manufacturing processes and more complex chip designs.
According to market analysis, wafer fabrication equipment (WFE) is expected to remain the largest segment of the semiconductor equipment market. It includes machines used for wafer processing, mask and reticle production, and other front-end wafer fabrication processes.
SEMI’s Semiconductor Capital Equipment Market forecast expects equipment suppliers’ annual revenues to approach $100 billion by 2028. The forecast points to a longer period of capital investment as the industry works to address capacity constraints, supply shortages, supply-chain disruptions, and rising demand.
Growth will be driven mainly by artificial intelligence (AI), along with increasing investment in foundry and logic, DRAM, NAND, testing, and packaging. SEMI also highlights the important role of equipment manufacturers in expanding production capacity and developing technologies for future computing systems.
