AI Demand Pushes 300mm Chip Equipment Spending Toward $149 Billion in 2026
SEMI forecasts global spending on 300mm front-end semiconductor fab equipment at $149 billion in 2026, up 31 percent year over year, and expects it to reach $227 billion by 2029. The expansion is being driven by artificial intelligence, high-performance computing, memory and other chip applications. SEMI also projects 20 new 300mm fabs or production lines to begin construction in 2026, followed by 18 in 2027.
SEMI's forecast covers front-end 300mm fab tools, not construction or assembly, packaging and testing. Spending would rise from $149 billion in 2026 to $227 billion in 2029, adding $78 billion annually, about 52 percent growth. The Americas could see equipment investment climb from $18.1 billion to $40.6 billion over that period, roughly 124 percent.
New construction also signals future tool demand: 20 300mm fabs or lines are expected to break ground in 2026 and 18 in 2027, with the U.S. accounting for three and four. Construction outlays may reach $47.5 billion in 2026, $63.3 billion in 2027 and $68.4 billion in 2028.
The spending surge could affect equipment makers, chip manufacturers, construction workers and communities hosting new fabs. More capacity may ease some chip shortages and support AI services, but local demands for skilled labor, water and power could grow. Consumers might see faster innovation, while supply-chain concentration and cost pressures may remain concerns.