MILPITAS, CA – Global semiconductor manufacturing equipment sales will reach $125.5 billion this year, up 7.4% year-over-year, according to SEMI’s mid-year report. Growth is being fueled by AI demand and technology transitions in logic and memory, the trade group added.

Sales are expected to climb further next year, hitting a projected $138.1 billion, setting another industry record.

Sales of wafer fab equipment (WFE) are forecast to grow to $110.8 billion this year, driven by investments in advanced nodes and memory. By next year, WFE sales are expected to reach $122.1 billion as chipmakers ramp up capacity to meet AI needs.

Back-end equipment sales, which include test, assembly and packaging tools, is also poised for continued growth. Test equipment is projected to hit $9.3 billion this year, up 23.2% from last year, while assembly and packaging will rise to $5.4 billion.

Regional spending will be led by China, Taiwan and South Korea, though all major regions except Europe are expected to grow starting this year. SEMI notes that trade policy risks could temper growth, however.