KUALA LUMPUR (March 20): Global 300mm fab equipment spending for front-end facilities is forecast to reach a record US$137 billion (RM649 billion) in 2027 after topping US$100 billion for the first time by 2025 on the strength of the memory market recovery, according to US-based SEMI.

In its quarterly 300mm Fab Outlook Report to 2027 released on Monday, the trade group said the spending will also be driven by strong demand for high-performance computing and automotive applications.

SEMI president and chief executive officer Ajit Manocha said projections for the steepening ramp of 300mm fab equipment spending in the coming years reflect the production capacity needed to meet growing demand for electronics across a diverse range of markets as well as a new wave of applications spawned by artificial intelligence (AI) innovation.

“The newest SEMI report also highlights the critical importance of increases in government investments in semiconductor manufacturing to bolster economies and security worldwide,” he said.

SEMI said the Fab Outlook to 2027 report shows China continuing to lead fab equipment spending with US$30 billion in investments in each of the next four years fuelled by government incentives and domestic self-sufficiency policies.

Supported by leading-edge nodes expansion for high-performance computing and the memory market recovery, Taiwanese and South Korean chip suppliers are increasing their equipment investments.

Taiwan is expected to rank second in equipment spending at US$28 billion in 2027, up from US$20.3 billion in 2024, while South Korea is expected to rank third at US$26.3 billion in 2027, an increase from US$19.5 billion this year.

The Americas is projected to double 300mm fab equipment investments from US$12 billion in 2024 to US$24.7 billion in 2027, while spending in Japan is expected to reach US$11.4 billion in 2027, followed by Europe and the Middle East (US$11.2 billion) and Southeast Asia (US$5.3 billion).