The global semiconductor manufacturing equipment market is projected for a sustained period of robust growth, according to a new forecast from SEMI (SEMI). Driven primarily by surging investments in artificial intelligence (AI), the market is expected to reach $133 billion in 2025, a 13.7% increase over the 2024 record. The expansion is forecast to continue, with the market rising to $145 billion in 2026 and $156 billion in 2027, breaking the $150 billion barrier for the first time.
The growth is widespread across the supply chain. The core Wafer Fab Equipment (WFE) segment is projected to grow 11.0% to $115.7 billion in 2025. Particularly strong growth is seen in the back-end sector, where Test Equipment revenue is forecast to surge 48.1% to $11.2 billion in 2025, driven by the increasing complexity of advanced chips and packaging.
Within the WFE segment, the memory sector stands out. Equipment spending for NAND Flash is expected to jump 45.4% in 2025, while DRAM equipment spending is forecast to grow over 15% annually in both 2025 and 2026, fueled by investments in High Bandwidth Memory (HBM) capacity. The Foundry/Logic segment is also set for steady growth, with investments increasingly concentrated on leading-edge nodes like 2nm GAA (Gate-All-Around), pushing its market size to an estimated $75.2 billion by 2027.
ICgoodFind's Insight
SEMI's bullish multi-year forecast underscores that the AI-driven investment cycle is fundamentally reshaping capital expenditure priorities across the semiconductor industry, creating sustained demand for both cutting-edge and supporting manufacturing technologies.
