Global semiconductor manufacturing equipment sales are projected to reach a record US$165.9 billion in 2026, up 23.2 per cent from the previous year, before rising to US$229.5 billion by 2028, according to SEMI’s Mid-Year Total Semiconductor Equipment Forecast.

The projection marks five consecutive years of industry growth, driven by accelerating investments in artificial intelligence (AI), advanced logic, high-bandwidth memory (HBM), advanced packaging and next-generation semiconductor manufacturing technologies.

The forecast indicates strong growth across wafer fabrication equipment, semiconductor test systems, and assembly and packaging equipment as chipmakers worldwide expand capacity to support AI-driven computing, hyperscale data centres, automotive electronics and intelligent edge devices.

Wafer fab equipment (WFE), the industry’s largest segment, is expected to reach US$143.9 billion in 2026, while semiconductor test equipment sales are projected to increase by 31 per cent to US$15.3 billion.

Ajit Manocha, President and CEO, SEMI, said, “AI is accelerating demand for more powerful and efficient chips, driving increased investment across the semiconductor capital equipment market. The mid-year forecast points to a higher equipment spending trajectory as chipmakers invest in the leading-edge logic, advanced memory, test and packaging capabilities required for the AI era.”

For India, the global investment cycle comes at a pivotal time. The country has approved 12 semiconductor manufacturing projects spanning fabrication plants, ATMP/OSAT facilities, compound semiconductors and display manufacturing, representing investments of more than US$20 billion.

Alongside initiatives such as the SEMICON India Programme, PLI, ECMS, EMC, RDI and AI Mission, and continued policy emphasis on semiconductor design and manufacturing, India is steadily developing a comprehensive semiconductor and electronics ecosystem.

Ashok Chandak, President, SEMI India, said, “The strong global growth in semiconductor manufacturing equipment investment reflects the beginning of a new technology cycle powered by AI, advanced computing and intelligent electronics. For India, this momentum aligns perfectly with our national semiconductor mission. As India rapidly builds fabs, OSATs, display manufacturing and a robust ecosystem for equipment, materials and components, the country is becoming an increasingly attractive destination for global investments. This presents a significant opportunity not only for semiconductor manufacturing, but also for developing a strong domestic supply chain, fostering innovation, creating high-value jobs and integrating India more deeply into the global semiconductor value chain.”

The report also highlights sustained investments in advanced memory technologies, including HBM, DRAM and NAND, as well as leading-edge logic manufacturing.

As the global semiconductor industry advances towards AI-driven and cutting-edge technologies, an important opportunity is also emerging in mature and speciality semiconductor nodes, where demand remains strong across automotive, industrial, power electronics, communications and consumer applications.

Ashok Chandak, President, SEMI India, said ,“India’s current manufacturing roadmap and design focus is well positioned to capitalise on this shift, enabling the country to become a competitive and trusted global manufacturing base while progressively moving up the technology value chain.”

Accelerating global demand for semiconductor manufacturing equipment also presents opportunities for equipment manufacturers, speciality material suppliers, automation companies, precision engineering firms, component manufacturers and technology service providers to expand their presence in India.

As global companies diversify supply chains and governments promote resilient semiconductor ecosystems, India is well positioned to emerge as an important manufacturing, innovation and supply chain hub for the global semiconductor industry.