Global Chip Equipment Spending Surges, Creating New Opportunities for India's Semiconductor Ecosystem

NewsVoir
Bengaluru (Karnataka) [India], July 20: Global semiconductor manufacturing equipment sales are projected to reach a record USD 165.9 billion in 2026, a 23.2% increase over the previous year, and continue their growth trajectory to USD 229.5 billion by 2028, according to SEMI's Mid-Year Total Semiconductor Equipment Forecast. This 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 highlights robust 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 largest segment, is expected to reach USD 143.9 billion in 2026, while semiconductor test equipment is projected to grow 31% to USD 15.3 billion.
"AI is accelerating demand for more powerful and efficient chips, driving increased investment across the semiconductor capital equipment market," said Ajit Manocha, SEMI President and CEO. "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, this global investment cycle comes at a pivotal time. The country has already approved 12 semiconductor manufacturing projects spanning fabs, ATMP/OSAT facilities, compound semiconductors and display manufacturing, representing investments of over USD 20 billion. Along with initiatives such as the SEMICON India Programme, PLI , ECMS, EMC, RDI, AI Mission and continued policy emphasis for semiconductor design and manufacturing, India is steadily building a comprehensive semiconductor and electronics ecosystem.
"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," said Ashok Chandak, President, SEMI India.
The report further underscores sustained investments in advanced memory technologies, including HBM, DRAM and NAND, and leading-edge logic manufacturing. As the global semiconductor industry races towards AI-driven, cutting-edge technologies, an equally important opportunity is emerging in mature and specialty semiconductor nodes, where demand remains strong across automotive, industrial, power electronics, communications and consumer applications. 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 in future, commented Mr. Ashok Chandak.
The accelerating global demand for semiconductor manufacturing equipment also presents significant opportunities for equipment manufacturers, specialty material suppliers, automation companies, precision engineering firms, component manufacturers and technology service providers to expand their footprint 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.
Semiconductor Equipment Sales by Region
China, Taiwan and Korea are expected to remain the top three destinations for equipment spending through 2028. China is projected to maintain the leading position over the forecast period, though growth is expected to moderate in 2026 following elevated investment levels in recent years. In Taiwan, spending is supported by leading-edge capacity builds for AI and high-performance computing, while Korea's equipment spending is driven by advanced memory technologies, including HBM. Other regions tracked are expected to see equipment spending increase in 2027 and 2028, supported by regionalization efforts, government incentives and targeted specialty capacity expansions.
(ADVERTORIAL DISCLAIMER: The above press release has been provided by NewsVoir. ANI will not be responsible in any way for the content of the same)