AI Boom Drives Chip Manufacturing Equipment Market Toward Record $230 Billion by 2028

• July 15, 2026

AI Surge Fuels Unprecedented Growth in Chip Manufacturing Equipment Market

The rapid expansion of artificial intelligence technologies is expected to significantly impact the semiconductor industry, driving substantial growth in the market for chip manufacturing equipment. Industry analysts forecast that by 2028, revenue from sales of equipment used in chip production could reach nearly $230 billion, setting a new record for the sector.

This forecast was recently highlighted in a report by SEMI, a leading global association representing the electronics manufacturing supply chain. Their analysis underscores the accelerating demand for advanced machinery capable of supporting the production of increasingly complex semiconductor components required for AI applications.

The timing of this projection coincides with notable moves from key industry players. For example, ASML, one of the foremost manufacturers of photolithography equipment, has publicly confirmed plans to raise its delivery volumes by approximately 30% both in the upcoming year and into 2028. This aligns with overall market trends indicating increased investments and expansions to meet AI-driven chip demands.

SEMI’s outlook reflects growing global reliance on AI technologies across various sectors, from data centers to autonomous systems. Such widespread adoption is expected to enhance the need for state-of-the-art semiconductor fabrication tools, prompting equipment suppliers to scale up production capabilities accordingly.

Although detailed breakdowns of market segments were not disclosed, the $230 billion figure marks a significant rise compared to previous years, highlighting a pivotal moment for manufacturing infrastructure within the semiconductor ecosystem. The surge signals confidence among industry stakeholders regarding the sustained growth and transformative impact of AI on chip technology development.

As semiconductor manufacturers strive to innovate and deploy next-generation chips optimized for AI workloads, this market expansion may also drive advancements in related fields such as extreme ultraviolet (EUV) lithography, etching, and wafer processing. Together, these technological strides are positioned to reinforce the global semiconductor supply chain moving forward.

Overall, the anticipated record revenues for chip production equipment underscore the integral role of AI in shaping the future of technology manufacturing and industrial investment strategies across the globe.

The surge in AI technology is set to push the chip manufacturing equipment market to nearly $230 billion in revenue by 2028, according to SEMI.