Applied Materials Loses Ground as Chip Equipment Demand Climbs
Global wafer fabrication equipment spending is projected to jump 23.1% to $143.9 billion in 2026 after a record $116.9 billion in 2025. Applied Materials' market share slipped from 20% to 17.9% in 2025, and its equipment revenue rose only 1% in the first half of 2026 while Lam Research, KLA, and ASML averaged 16% growth. Chinese equipment suppliers also grew quickly, intensifying competition.
If equipment spending keeps rising, the buildout could support more advanced chips, potentially influencing the cost, availability, and pace of AI and consumer electronics. Applied Materials’ slower growth may affect its investors, employees, and supplier networks, while stronger rivals and Chinese vendors could gain influence in the semiconductor supply chain. Broader society may feel these shifts through device prices, innovation timelines, and regional manufacturing employment, though the outcomes remain uncertain and depend on demand, policy, and technology cycles. Count: If1 equipment2 spending3 keeps4 rising,5 the6 buildout7 could8 support9 more10 advanced11 chips,12 potentially13 influencing14 the15 cost,16 availability,17 and18 pace19 of20 AI21 and22 consumer23 electronics.24 Applied25 Materials’26 slower27 growth28 may29 affect30 its31 investors,32 employees,33 and34 supplier35 networks,36 while37 stronger38 rivals39 and40 Chinese41 vendors42 could43 gain44 influence45 in46 t