June 26, 2025 /SemiMedia/ — Global semiconductor manufacturing is set to maintain strong growth momentum, with 300mm fab capacity projected to grow at a 7% CAGR from late 2024 through 2028, reaching a record 11.1 million wafers per month, according to SEMI’s latest report.

A key driver of this expansion is the rapid build-up of advanced node capacity (7nm and below), which is expected to surge 69% from 850,000 wpm in 2024 to 1.4 million wpm by 2028, doubling the industry average with a CAGR of 14%. SEMI forecasts that advanced processes will reach a critical milestone in 2026, surpassing 1 million wpm for the first time.

The outlook for 2nm and sub-2nm capacity is even more aggressive, with output rising from under 200,000 wpm in 2025 to over 500,000 wpm by 2028. This reflects rising demand driven by artificial intelligence (AI) and other high-performance applications.

“AI continues to be a transformative force for the global chip industry, fueling unprecedented investment in leading-edge manufacturing,” said Ajit Manocha, SEMI president and CEO. “The rapid adoption of AI applications is propelling the entire semiconductor ecosystem toward accelerated innovation.”

SEMI also highlighted that equipment investment for advanced technology fabs will see substantial increases in 2025 and 2027. Capital spending on advanced nodes is expected to more than double from $26 billion in 2024 to over $50 billion in 2028, reflecting a robust CAGR of 18%.

Notably, investment in 2nm and beyond will jump by more than 120%, from $19 billion in 2024 to $43 billion by 2028, underscoring the industry’s aggressive pursuit of next-generation capabilities.

To meet rising demand, chipmakers are scaling production ahead of schedule, with advanced node capacity growth rates forecast at 33% in 2025 and 21% in 2027. Meanwhile, commercial deployment of 1.4nm technology is anticipated by 2028, signaling the next leap in chip manufacturing.