SEMI Projects Record-Breaking $109 Billion in OEM Semiconductor Equipment Sales for 2024

SEMI has projected that global sales of semiconductor manufacturing equipment by original equipment manufacturers (OEMs) will reach a record-setting $109 billion in 2024, detailed in SEMI's latest Equipment Market Data report, highlighting a 3.4% increase from previous figures.

The wafer fab equipment (WFE) segment is a major contributor to this forecast, despite an anticipated moderate contraction of 2.9% year-over-year. WFE sales are expected to total $57.2 billion in 2024, with a forecasted 10.3% growth in 2025, driven by rising demand for advanced nodes and innovative device architectures.

Memory-related capital expenditures are also set to boost the market. NAND equipment sales are projected to see a slight increase of 1.5% to $9.35 billion in 2024. Similarly, DRAM equipment sales are expected to grow by 24.1% in 2024 and 12.3% in 2025, fueled by the increasing need for high-bandwidth memory (HBM) for AI applications and ongoing technological advancements.

China continues to dominate as the top destination for semiconductor equipment spending, with projections indicating equipment purchases will exceed $35 billion in 2024. Taiwan and Korea also remain significant markets, reflecting the sustained investment in semiconductor infrastructure in these regions.

The back-end equipment segment, which includes test and assembly/packaging equipment, is set for a recovery in the second half of 2024. Sales in this segment are forecasted to rise by 7.4% to $6.7 billion for semiconductor test equipment and by 10.0% to $4.4 billion for assembly and packaging equipment. These growth rates are expected to accelerate in 2025, with projections of 30.3% and 34.9% increases, respectively.

The semiconductor industry's outlook remains positive, driven by advancements in artificial intelligence (AI), high-performance computing (HPC), and increasing complexity in semiconductor devices. The strong fundamentals and growth potential of the industry are evident in the ongoing investments in capacity expansion and new fab projects.

As the semiconductor sector continues to evolve and adapt to new technological demands, SEMI's forecast of reaching a record $109 billion in sales for 2024 underscores the industry's resilience and its critical role in the global technology landscape.