Global Semiconductor Equipment Sales Forecast to Reach $229 Billion in 2028

According to SEMI, global sales of total semiconductor manufacturing equipment by OEMs are forecast to reach a record high of $165.9 billion in 2026, increasing 23.2% year-on-year.

Growth momentum is expected to continue through 2028, with total equipment sales forecast to reach a record $229.5 billion. This would mark five consecutive years of growth as AI-driven demand reshapes semiconductor manufacturing investment.

These numbers were released in SEMI’s Mid-Year Total Semiconductor Equipment Forecast – OEM Perspective. 

“AI is accelerating demand for more powerful and efficient chips, driving increased investment across the semiconductor capital equipment market,” said Ajit Manocha, SEMI president and CEO. “The mid-year forecast points to a higher equipment spending trajectory as chipmakers invest in the leading-edge logic, advanced memory, test and packaging capabilities required for the AI era.”

The stronger outlook reflects accelerating investment in AI infrastructure, leading-edge logic, advanced memory, and back-end technologies needed to support higher compute density, high bandwidth memory (HBM)-related investment, and increasingly complex device architectures.

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.

Semiconductor Equipment Sales by Segment

After registering a record $116.9 billion in sales last year, the Wafer Fab Equipment (WFE) segment is projected to increase 23.1% to $143.9 billion in 2026. WFE segment sales are projected to expand 21.8% in 2027 and 14.1% in 2028 to reach the $200 billion mark, as manufacturers accelerate capacity expansion and technology migration for AI-related workloads.

AI-related semiconductor demand is also driving expansion in back-end equipment. After surging 55.3% in 2025, semiconductor test equipment sales are projected to increase 31.0% to $15.3 billion in 2026. 

Assembly and packaging equipment sales, which increased 20.8% in 2025, are projected to rise 9.6% to $6.7 billion in 2026. Growth is expected to continue through 2028, with test equipment reaching $20.8 billion and assembly and packaging equipment reaching $8.6 billion. 

This growth is supported by increasing device complexity, advanced and heterogeneous packaging adoption, and more rigorous performance and reliability requirements for AI and HBM devices.

Semiconductor Equipment Sales by Region

China, Taiwan, and Korea are expected to remain the top three destinations for equipment spending through 2028. 

China is projected to maintain the leading position over the forecast period, though growth is expected to moderate in 2026 following elevated investment levels in recent years. 

In Taiwan, spending is supported by leading-edge capacity builds for AI and high-performance computing, while Korea’s equipment spending is driven by advanced memory technologies, including HBM. 

Other regions tracked are expected to see equipment spending increase in 2027 and 2028, supported by regionalization efforts, government incentives, and targeted specialty capacity expansions.