SEMI released its latest forecast at SEMICON West 2026, projecting global 300mm front-end fab equipment spending will reach $149 billion this year**, up **31% year-over-year**, maintaining **double-digit growth** for years to come and climbing to **$227 billion by 2029.
The equipment spending growth is directly supported by capacity construction. SEMI data shows 26 new 12-inch fab line projects started this year, with 18 more new lines starting in 2027; 13 12-inch lines came online this year, rising to 23 next year. Global 12-inch fab construction spending grew 23% to $47.5 billion this year**, and will reach **$63.3 billion and $68.4 billion in the next two years.
SEMI President and CEO Ajit Manocha said semiconductor demand growth is increasingly translating into physical capacity expansion, with equipment investment strengthening and many fab projects about to come online, providing the manufacturing base for AI, HPC, and next-generation semiconductor applications.
There is a time lag between new line starts and production ramp. This year's start peak corresponds to capacity release around 2028, while the jump from 13 to 23 lines coming online next year means a large wave of capacity in 2027. For equipment suppliers and materials makers, this means order visibility is extending from annual to multi-year. For chip designers and end customers, batch capacity release could change supply-demand dynamics at some process nodes in the next two to three years.
ICgoodFind Summary: SEMI pushes 300mm equipment investment forecasts to $227 billion by 2029, with 26 new projects starting this year and 23 lines coming online next year—the fab capacity expansion schedule is set. AI and HPC demand is the underlying driver, and equipment and materials order cycles are being stretched longer.
