Semiconductor Manufacturing Equipment Market Gains US$5 Billion AI-Era R&D Center | Report by DataM Intelligence

Applied Materials has unveiled its US$5 billion EPIC Center in Silicon Valley, a collaborative research and development facility for semiconductor process technology and manufacturing equipment. With TSMC, Intel, SK hynix, Micron and Samsung among its founding partners, the center aims to accelerate development and commercialization of tools and processes as AI chips raise demands on performance, memory, packaging and production yields.

The center creates opportunities for equipment suppliers, chipmakers and research partners to co-develop and qualify next-generation manufacturing processes. Applied Materials, ASML, Tokyo Electron, Lam Research and KLA compete across equipment and process technologies; closer collaboration and faster qualification cycles may strengthen suppliers positioned for leading-edge logic, HBM and advanced packaging demand.

According to DataM Intelligence, the global semiconductor manufacturing equipment market was valued at US$143.33 billion in 2025 and is projected to reach US$306.61 billion by 2035, growing at a 7.9% CAGR during 2026-2035.

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Asia-Pacific leads the market and is also expected to grow fastest, supported by fab investment across Taiwan, South Korea, Japan and China. SEMI projects global 300mm fab equipment spending to rise 18% to US$133 billion in 2026 and 14% to US$151 billion in 2027. Logic and micro equipment investment is projected to lead spending during 2027-2029, while AI-related demand is also fueling HBM, DRAM and NAND equipment purchases.

Recent Developments

- October 8, 2026 - Applied Materials added UCLA as an EPIC Center research partner, enabling joint work on chip materials and process integration using advanced tools.

- September 8 - Intel Foundry and ASML reported over one million wafers processed using High-NA EUV across testing, R&D and selected production layers.

- September 8 - Samsung and ASML expanded their partnership. Samsung plans High-NA EUV for DRAM manufacturing by 2028 and joined work on 12-inch photomasks.

- August 13 - Lam Research announced over US$3 billion in planned R&D lab investment over five years, targeting over 50% higher experiment capacity.

- July 14 - SEMI forecast 2026 equipment sales of US$165.9 billion, up 23.2%, with wafer-fab equipment at US$143.9 billion.

- July 9 - Micron outlined up to US$3 billion for U.S. supply-chain investment, including US$500 million for GlobalWafers' Texas wafer facility and a 10-year supply agreement.

- June 5 - Japan's Rapidus secured ¥150 billion in government funding to support 2 nm development and planned 2027 production.

Regional Analysis

Japan Market
Japan combines equipment exports with new domestic fab demand. SEAJ forecasts ¥6.55 trillion in sales of Japan-made equipment in FY2026, up 26%, driven by AI logic and HBM-related DRAM investment. That total includes domestic and overseas billings; sales into Japan are forecast at ¥1.58 trillion, up 10%. Rapidus' ¥150 billion funding supports 2 nm production, while SEAJ projects Japan-market sales at ¥2.28 trillion by FY2028 as logic and memory projects move toward installation. FY2027 sales are forecast at ¥1.82 trillion, up 15%, as advanced DRAM and AI-driven NAND investment builds.

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United States Market
The U.S. is localizing its supply chain around fab construction. The Semiconductor Industry Association tracks over US$828 billion in announced projects across 30 states. Micron's GlobalWafers financing ties equipment demand to local 300 mm wafer capacity; Lam's R&D expansion and Applied Materials' EPIC partnership strengthen domestic development and qualification. These are project-pipeline signals, not U.S. equipment-market revenue.

Company Profiles
- ASML: Supplies DUV and EUV lithography systems. 2025 net sales reached €32.7 billion; High-NA EUV work with Intel and Samsung is advancing toward production and DRAM use.

- Applied Materials: Provides wafer-processing and materials-engineering systems across deposition, etch and process control. Its UCLA partnership offers researchers access to advanced tools.

- Tokyo Electron: Japan-based supplier of coater/developer systems for advanced patterning. Its LITHIUS line targets throughput, smaller footprints and process extensions. The company also supplies deposition, etch, cleaning and thermal-processing equipment.

- Lam Research: Supplies etch, deposition, photoresist-strip and wafer-cleaning systems. Its planned US$3 billion lab investment expands experiments and accelerates tool development.

Market Segmentation

By Equipment Category
SEMI projects 2026 wafer-fab equipment sales at US$143.9 billion, or 86.7% of total. Test equipment is forecast at US$15.3 billion (9.2%), reflecting demanding HBM and AI-chip validation; assembly and packaging equipment reaches US$6.7 billion (4.0%).

By Application
Foundry and logic demand tracks advanced-node capacity and AI accelerators. Memory tools benefit from HBM and DRAM migration; SEMI forecasts DRAM equipment sales rising 39% to US$38.8 billion in 2026.

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