Growth Supported by Leading-edge Logic, Memory and Advanced Packaging Applications from 2025 through 2027
TOKYO, Dec. 16, 2025 /PRNewswire/ — Global sales of total semiconductor manufacturing equipment by original equipment manufacturers (OEMs) are forecast to reach a record high of $133 billion in 2025, growing 13.7% year-on-year, SEMI announced today in its Year-End Total Semiconductor Equipment Forecast – OEM Perspective at SEMICON Japan 2025. Growth in semiconductor manufacturing equipment sales is expected to continue in the two following years of the forecast period, with projections of $145 billion in 2026 and $156 billion in 2027. This growth will be driven primarily by investments related to AI, particularly in leading-edge logic, memory, and the adoption of advanced packaging technologies.
“Global semiconductor equipment sales show robust momentum, with both the front-end and back-end segments projected to see three consecutive years of growth, culminating in total sales surpassing $150 billion for the first time in 2027,” said Ajit Manocha, SEMI president and CEO. “Investments to support AI demand have been stronger than anticipated since our midyear forecast, leading us to boost the outlook for all segments.”
Semiconductor Equipment Sales by Segment
After registering a record $104 billion in sales last year, the wafer fab equipment (WFE) segment, which includes wafer processing, mask/reticle, and fab facilities equipment, is projected to grow 11.0% to $115.7 billion in 2025. This represents an upward revision from the previously forecast $110.8 billion in the SEMI 2025 Mid-Year Equipment Forecast, reflecting stronger than expected investments in DRAM and high-bandwidth memory (HBM) to support AI computing. Continued capacity build-out in China is also contributing meaningfully to WFE demand. Looking ahead, WFE segment sales are projected to expand 9.0% in 2026 and 7.3% in 2027, reaching $135.2 billion as device makers increase spending on advanced logic and memory technologies.
The back-end equipment segment is anticipated to continue its strong recovery that began in 2024. Sales of semiconductor test equipment are projected to surge 48.1% to $11.2 billion in 2025, while assembly and packaging (A&P) equipment sales are projected to rise 19.6% to $6.4 billion. Back-end growth is expected to continue, with test equipment sales growing 12.0% in 2026 and 7.1% in 2027, and A&P sales are forecast to grow 9.2% in 2026 and 6.9% in 2027. This expansion is underpinned by the growing complexity of device architectures, accelerated adoption of advanced and heterogeneous packaging, and stringent performance requirements for AI and HBM semiconductors. These drivers are partly offset by ongoing softness in consumer, automotive and industrial demand, which continues to weigh on some mainstream test and packaging segments.
Wafer Fab Equipment Sales by Application
WFE sales for foundry and logic applications are expected to show robust 9.8% year-over-year growth to $66.6 billion in 2025, supported by resilient spending for advanced nodes. The segment is forecast to see 5.5% growth in 2026 and 6.9% increase to $75.2 billion in 2027 as chipmakers add capacity for AI accelerators, high-performance computing and premium mobile processors. Investments will increasingly target leading-edge technologies as the industry moves toward high-volume manufacturing at the 2nm gate-all-around (GAA) node.
Memory-related capital expenditures are projected to see significant expansion through 2027 powered by increasing demand for HBM to support AI deployment and ongoing technology migration. The NAND equipment market is expected to see growth of 45.4% to $14.0 billion in 2025 and further increase 12.7% to $15.7 billion in 2026 and 7.3% to $16.9 billion in 2027, driven by advancements in 3D NAND stacking and capacity expansion at both leading and mainstream layers. DRAM equipment sales are projected to rise 15.4% to $22.5 billion in 2025, followed by 15.1% and 7.8% year-on-year growth in 2026 and 2027, respectively, as memory suppliers ramp HBM and upgrade to more advanced process nodes to meet AI and data center requirements.
Semiconductor Equipment Sales by Region
China, Taiwan and Korea are expected to remain the top three destinations for equipment spending through 2027. China is projected to maintain the leading position over the forecast period as domestic chipmakers continue to invest in both mature and select advanced nodes, even as growth moderates and sales gradually decline from 2026. In Taiwan, robust 2025 spending reflects large-scale leading-edge capacity builds for AI and high-performance computing, while Korea’s equipment outlays are supported by substantial investments in advanced memory technologies, including HBM. All other regions tracked are expected to see equipment spending increase in 2026 and 2027, supported by government incentives, regionalization efforts and targeted specialty capacity expansions.
The SEMI forecast is based on collective input from top equipment suppliers, the SEMI Worldwide Semiconductor Equipment Market Statistics (WWSEMS) data collection program and the industry-recognized SEMI World Fab Forecast database.
About SEMI Market Data
The Equipment Market Data Subscription (EMDS) from SEMI provides comprehensive market data for the global semiconductor equipment market. A subscription includes three reports:
- Monthly SEMI North American Billings Report, an early perspective of equipment market trends
- Monthly Worldwide Semiconductor Equipment Market Statistics (WWSEMS), a detailed report of semiconductor equipment billings for seven regions and more than 22 market segments
- Bi-annual Total Semiconductor Equipment Forecast – OEM Perspective, an outlook for the semiconductor equipment market
For more information on the report or to subscribe, please contact the SEMI Market Intelligence Team at mktstats@semi.org. Details on SEMI market data are available at SEMI Market Data.
About SEMI
SEMI® is the global industry association connecting over 3,000 member companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management and other programs. Our SEMICON® expositions and events, technology communities, standards and market intelligence help advance our members’ business growth and innovations in design, devices, equipment, materials, services and software, enabling smarter, faster, more secure electronics. Visit www.semi.org, contact a regional office, and connect with SEMI on LinkedIn and X to learn more.
Association Contacts
Sherrie Gutierrez/SEMI
Phone: 1.831.889.3800
Email: sgutierrez@semi.org
Stephanie Quinn/Kiterocket (Media Inquiries)
Phone: 1-480-316-8370
Email: squinn@kiterocket.com
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