AI Boom Drives Global Chipmaking Equipment Sales to $126 Billion in 2026

The growing demand for artificial intelligence (AI) applications is fueling a significant rise in sales of equipment used to manufacture computer chip wafers. According to industry group SEMI, global chipmaking equipment sales are projected to increase by 9% in 2026, reaching $126 billion, and further grow 7.3% to $135 billion in 2027.

AI Boom Drives Global Chipmaking Equipment Sales to $126 Billion in 2026

Asia Remains the Center of Chip Equipment Investments

Most semiconductor manufacturing takes place in Asia, with China, Taiwan, and South Korea expected to remain the largest markets for chipmaking equipment through 2027. China is anticipated to invest the most overall, supporting expansion across logic and memory chip production for AI applications.

• Taiwan, home to leading chipmaker TSMC, is expanding its leading-edge capacity to meet global demand.

• South Korea, home to Samsung and SK Hynix, is investing heavily in advanced memory chips critical for AI workloads.

SEMI also noted that other regions worldwide will see increases in equipment spending in 2026 and 2027, driven by government incentives, regionalization efforts, and targeted specialty chip capacity expansions.

Top Suppliers of Chipmaking Equipment

The global semiconductor equipment market is dominated by a few key players:

• ASML (Netherlands) – largest supplier, accounting for roughly 25% of sales.

• Applied Materials (USA) – leading manufacturer of chip fabrication tools.

• KLA Corp (USA) – specializes in inspection and metrology equipment.

• Lam Research (USA) – provides etching and deposition solutions.

• Tokyo Electron (Japan) – a major supplier of semiconductor production systems.

These companies are poised to benefit from the AI-driven surge in demand for logic and memory chips, as manufacturers expand production capacity to keep pace with technological advancements.

AI’s Role in Semiconductor Growth

The expansion of AI technologies, including generative AI models, autonomous systems, and advanced cloud computing, is driving unprecedented demand for high-performance chips. As a result, the semiconductor equipment sector is experiencing sustained growth, with both established and emerging players investing heavily in machinery to produce next-generation processors.

Conclusion

The AI boom is reshaping the semiconductor industry, driving a projected $126 billion in chipmaking equipment sales in 2026. With Asia leading investments and top suppliers expanding capacity, the global market is set for continued growth, underscoring the critical role of AI in shaping the future of computing.