AI boom drives record rise in chip equipment spending

Global spending on semiconductor manufacturing equipment rose in the third quarter of 2025 as chipmakers invested in advanced logic, memory, and packaging for artificial intelligence applications.

SEMI reported that worldwide semiconductor equipment billings reached USD $33.66 billion in the quarter. The figure was up 11% from the same period a year earlier.

Billings increased 2% compared with the previous quarter. The data came from SEMI's Worldwide Semiconductor Equipment Market Statistics report.

SEMI said spending growth came from advanced technology nodes. It highlighted leading-edge logic, DRAM and packaging focused on AI computing.

The organisation also pointed to an increase in equipment shipments to China. It said this supported the overall increase in global billings.

The quarterly figures suggested that the industry's recent investment cycle is continuing. Equipment suppliers have been reporting sustained orders for tools used in AI data centres, high-end smartphones, and advanced laptops.

SEMI said billings so far this year are running at record levels. The group tracks equipment sales across front-end and back-end manufacturing.

"Global semiconductor equipment billings year-to-date have reached nearly $100 billion - a record through three quarters - reflecting the industry's sustained momentum and commitment to invest in technology innovation," said Ajit Manocha, President and CEO, SEMI.

Equipment makers have benefited from demand for extreme ultraviolet lithography, advanced deposition and etch tools, and packaging systems. These tools are used to produce processors and memory chips that run AI workloads.

Chipmakers have been increasing spending on leading-edge logic production. These facilities manufacture central and graphics processors for AI training and inference.

Memory producers have also raised investment in DRAM. These chips support high-bandwidth access in AI servers.

Packaging has become a larger part of total equipment budgets. The segment includes systems for advanced 2.5D and 3D packaging, as well as other techniques used in AI accelerators.

"Strong AI demand continues to drive spending in advanced logic and memory segments, as well as in packaging applications geared toward energy efficiency," said Manocha.

He linked this trend with the broader role of semiconductors in digital infrastructure.

"This positive trajectory underscores the critical role semiconductors play in shaping a smarter and more connected world that powers next-generation digital solutions," said Manocha.

SEMI compiled the billings data from its members and from the Semiconductor Equipment Association of Japan. The report covers companies that supply tools for wafer fabrication, assembly, packaging, and testing.

The organisation publishes monthly and quarterly statistics on equipment sales. It also tracks regional demand.

The latest report breaks out billings by major manufacturing regions. These include China, Taiwan, South Korea, Japan, North America, Europe, and Southeast Asia.

China's stronger equipment intake came amid ongoing efforts by domestic chipmakers to expand local production. Several Chinese foundries and memory makers have been ramping up projects that focus on mature and mid-range process nodes.

Outside China, analysts have pointed to large projects in Taiwan, South Korea and the United States. These projects focus on advanced logic for AI and high-performance computing.

SEMI also sells a broader Equipment Market Data Subscription. This service aggregates information from suppliers across multiple segments.

The subscription includes a monthly billing report. It gives a high-level view of market trends for semiconductor equipment.

It also includes a version of the worldwide billings data that breaks down sales by seven regions and 24 product categories. This breakdown covers lithography, deposition, etch, metrology, cleaning, assembly, packaging, and test tools.

A separate forecast report forms the third part of the subscription. This report offers an outlook for the semiconductor equipment market over the coming years.

SEMI said the combined data set allows companies to benchmark their performance against the wider market. It also said the information assists with planning for future investments.

The association expects AI-related demand to continue to influence spending patterns. It also expects ongoing investment in advanced packaging and energy-efficient designs.