The expansion is driven by a steady influx of new manufacturing facilities, with 20 production lines scheduled to break ground worldwide in 2026 and another 18 in 2027. This physical growth aims to provide the necessary manufacturing capacity for high-performance computing, artificial intelligence, and next-generation silicon applications, according to SEMI President and CEO Ajit Manocha.
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Global Semiconductor Fab Investment to Hit $227 Billion by 2029
With global spending on 300mm front-end equipment set to reach $149 billion in 2026, the semiconductor industry is embarking on a massive infrastructure buildout. SEMI forecasts this investment will maintain a double-digit growth trajectory, culminating in a record-breaking $227 billion annual expenditure by 2029.
Construction activity is scaling alongside equipment purchases. Global fab construction spending is projected to climb 23% to $47.5 billion in 2026, reaching $68.4 billion by 2028. The United States is becoming a focal point in this shift, as the region’s equipment investment is expected to more than double from $18.1 billion in 2026 to $40.6 billion by 2029. As these projects move toward operation, the industry expects 13 new facilities to ship their first silicon in 2026, a figure poised to nearly double to 23 by 2027.
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