Overview

The Semiconductor Equipment and Materials International (SEMI) released its Mid‑Year Total Semiconductor Equipment Forecast, projecting global sales of semiconductor manufacturing equipment to reach a record USD 165.9 billion in 2026, representing a 23.2 % increase over 2025. The forecast anticipates continued expansion to USD 229.5 billion by 2028, marking the fifth consecutive year of growth driven by accelerating investments in artificial intelligence (AI), advanced logic, high‑bandwidth memory (HBM), advanced packaging and next‑generation manufacturing technologies.

Segment Breakdown

  • Wafer Fabrication Equipment (WFE) remains the largest segment, expected to total USD 143.9 billion in 2026.
  • Semiconductor Test Equipment is projected to grow 31 % year‑on‑year, reaching USD 15.3 billion.
  • Growth is also forecast for assembly and packaging equipment, though specific 2026 values are not disclosed.

Executive Commentary

Ajit Manocha, President and CEO of SEMI, stated that AI is accelerating demand for more powerful and efficient chips, pushing chipmakers to increase capital equipment spending across logic, memory, test and packaging. Ashok Chandak, President of SEMI India, highlighted that the global spending surge aligns with India’s national semiconductor mission, creating significant opportunities for domestic manufacturing, supply‑chain development, high‑value job creation and deeper integration into the global value chain.

Implications for India

India has already approved 12 semiconductor manufacturing projects—including fabs, ATMP/OSAT facilities, compound semiconductor and display plants—representing investments exceeding USD 20 billion. The ecosystem is being reinforced through programmes such as SEMICON India, the Production‑Linked Incentive (PLI) scheme, Electronics Manufacturing Clusters (EMC), Electronics Component Mission (ECMS), R&D Incentive (RDI) and the broader AI Mission. These initiatives aim to build a comprehensive semiconductor and electronics ecosystem, positioning India as an attractive destination for global equipment manufacturers, specialty material suppliers, automation firms, precision‑engineering companies and technology service providers.

Regional Outlook

China, Taiwan and Korea are expected to remain the top three destinations for equipment spending through 2028. China’s growth is projected to moderate in 2026 after recent high investment levels. Taiwan’s spending is supported by leading‑edge capacity builds for AI and high‑performance computing, while Korea’s growth is driven by advanced memory technologies, including HBM. Other regions are forecast to increase spending in 2027‑2028, aided by regionalization, government incentives and specialty capacity expansions.

Conclusion

The SEMI forecast underscores a robust, AI‑driven technology cycle that offers India a timely window to expand its semiconductor manufacturing base, develop a domestic supply chain, and capture a growing share of global equipment spending.