Global spending on 12-inch fab equipment this year is forecast to drop 18 percent year-on-year to US$74 billion, following growth of 7 percent last year, SEMI said yesterday.
However, spending is expected to rebound next year and grow over the next three years, thanks to strong demand for high-performance computing and automotive applications, the industry association said in its quarterly outlook report.
Increased demand for memory chips is contributing to rising equipment investments, the report said.
Photo: AFP
Equipment spending is forecast to rise 12 percent to US$82 billion next year, increase 24 percent to US$101.9 billion in 2025 and grow 17 percent to US$118.8 billion in 2026, SEMI said.
“We expect a wave of growth in 12-inch fab equipment spending from next year, underscoring the strong secular demand for semiconductors,” said SEMI chief marketing officer Terry Tsao (曹世綸), who is also president of SEMI Taiwan.
“The foundry and memory segments will play a key role in this growth, which shows the demand for chips across a wide range of end markets and applications,” he said in a statement.
By region, South Korea is expected to lead global 12-inch fab equipment spending in 2026, with the country’s investments estimated to double to US$30.2 billion, compared with US$15.7 billion this year, the report said.
SEMI expects Taiwan’s spending to come second, with 12-inch fab equipment spending reaching US$23.8 billion in 2026, up from US$22.4 billion this year, it said.
Ranking third, China’s spending is projected to reach US$16.1 billion in 2026, an increase from US$14.9 billion this year, the report said.
Equipment spending in the US is expected to nearly double from US$9.6 billion this year to US$18.8 billion in 2026, it added.
By segment, the foundry industry is projected to take a lead in equipment spending at US$62.1 billion in 2026, up from US$44.6 billion this year, SEMI said.
Major product categories, including memory, analogue and logic chips, are expected to see marked increases in equipment spending over the next three years, it said, adding that fab spending on microprocessors and microcontrollers, discrete chips and optoelectronics semiconductors is expected to decline in 2026.
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