- WFE, NAND and DRAM sales rose more than expected this year
- China, Taiwan and Korea remain the epicenter of chip manufacturing
- Semiconductor market has surpassed $200 billion in quarterly revenue
Global sales of semiconductor manufacturing equipment are forecast to reach $133 billion in 2025, marking a 13.7% year-on-year increase, with the numbers expected to rise to $145 billion by 2026 and $156 billion by 2027.
The figures come from a new report from SEMI, which warns that semiconductor manufacturing tools could be entering a period of rapid cost inflation driven by artificial intelligence tools and cloud computing workloads.
According to the data, Wafer Fab Equipment (WFE) costs are increasing “as the industry moves toward high-volume manufacturing at the 2nm gate-all-around (GAA) node.”
High-performance computing is about to get a lot more expensive
After seeing 9.8% growth in WFE sales this year, SEMI predicts two consecutive years of 5.5% and 6.6% growth as chipmakers add capacity for AI accelerators, high-performance computing and premium mobile processors.
Demand for high-bandwidth memory is also driving memory-related capital spending, with the NAND equipment market estimated to grow 45.4% this year alone. Sales of DRAM equipment could also see a 15.4% increase this year.
“Investments to support AI demand have been higher than anticipated since our mid-year forecast, leading us to improve prospects for all segments,” explained SEMI CEO Ajit Manocha.
Most equipment spending is expected to be concentrated in China, Taiwan and Korea for the foreseeable future, but all regions tracked are expected to see growth over the two-year period for which SEMI has released predictions.
Elsewhere, Omdia reported a 14.5% quarter-on-quarter increase in semiconductor market revenue, surpassing the $200 billion mark (and reaching $216.3 billion) for the first time.
“Demand for conventional DRAM is rising alongside HBM as AI inference workloads surge, driving an exceptional near-term price rally,” said senior principal analyst Lino Jeng.
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