AI boom seen lifting chipmaking equipment sales 9% to $126 billion in 2026

Sales of equipment used to make computer chip wafers will rise about 9% to $126 billion in 2026 and a further 7.3% to $135 billion in 2027, as chipmakers expand capacity for logic and memory chips used in artificial intelligence, industry group SEMI forecast on Tuesday.

Most chips are made in Asia, and SEMI expects China, Taiwan and South Korea to remain the top markets for equipment through 2027, with China investing the most overall.

Taiwan, home to top chipmaker TSMC, will expand leading-edge capacity, while South Korea, home to Samsung and SK Hynix, is investing in advanced memory chips used for AI.

"All other regions tracked are (also) expected to see equipment spending increase in 2026 and 2027, supported by government incentives, regionalization efforts and targeted specialty capacity expansions," SEMI said.

The biggest supplier of chip equipment, ASML of the Netherlands, accounts for about a quarter of sales. Other top firms include Applied Materials, KLA Corp and Lam Research of the U.S., and Japan’s Tokyo Electron.

-Toby Sterling/Reuters