The global semiconductor manufacturing equipment market is projected to grow 9% year-on-year, reaching $126 billion in 2026, driven by escalating demand for advanced chips fueled by artificial intelligence. This expansion underscores a pivotal shift in the tech supply chain.
- Global chipmaking equipment sales projected to reach $126 billion in 2026
- 9% year-on-year growth driven by AI demand for advanced semiconductors
- Extreme ultraviolet (EUV) lithography systems are a key component of this investment
- Major suppliers include ASML, Lam Research, Applied Materials, and Tokyo Electron
- Foundries like TSMC, Samsung, and Intel are increasing capital expenditures
- Expansion supports AI, high-performance computing, and localized semiconductor supply chains
The semiconductor industry is on a sharp upward trajectory, with chipmaking equipment sales expected to climb to $126 billion in 2026, according to industry projections. This represents a 9% increase from the previous year, reflecting sustained capital investment in next-generation fabrication facilities. The growth is primarily fueled by the rapid adoption of AI technologies across data centers, consumer electronics, and autonomous systems, all of which rely on cutting-edge semiconductor nodes such as 3nm and 2nm. The demand for advanced lithography systems, particularly extreme ultraviolet (EUV) machines, is a key driver of this expansion. These high-precision tools are essential for producing the dense transistor arrays required for AI accelerators and high-performance computing chips. Companies specializing in semiconductor equipment—such as ASML, Lam Research, Applied Materials, and Tokyo Electron—are positioned to benefit from this surge in spending, with capital expenditures by major foundries like TSMC, Samsung, and Intel expected to rise significantly. The $126 billion figure marks a notable milestone in the industry’s recovery and modernization. It reflects not only increased spending in North America and Asia-Pacific but also a strategic realignment toward localized supply chains and enhanced semiconductor self-sufficiency. The trend suggests that semiconductor fabrication capacity will expand at a compound annual growth rate of over 7% through 2026. Market participants, including equipment suppliers, foundry operators, and financial institutions tracking tech sector performance, are closely monitoring this trajectory. The expansion of chipmaking infrastructure is expected to support long-term innovation in AI, 5G, and edge computing, while also influencing global trade dynamics and technology competitiveness.