On June 26, SEMI published its latest 300mm Fab Outlook report, offering an in-depth analysis of the global semiconductor manufacturing industry's current status and future trajectory. The report forecasts sustained strong momentum and notable growth over the coming years, with semiconductor manufacturing capacity expected to expand at a compound annual growth rate (CAGR) of 7% from the end of 2024 through 2028. This growth will elevate total capacity to a record 11. 1 million wafers per month (wpm) by 2028, marking substantial advancement in manufacturing capabilities. The key driver behind this expansion is the ongoing growth of advanced process technologies, especially at the 7 nanometer (nm) node and below. Capacity for these advanced processes is projected to increase by about 69%, rising from 850, 000 wpm in 2024 to an unprecedented 1. 4 million wpm by 2028. This represents a CAGR of roughly 14%, double the average growth rate predicted for the overall semiconductor industry. This marked increase highlights the industry's dedication to investing in state-of-the-art fabrication technologies to satisfy the surging demand for high-performance, energy-efficient semiconductor devices. As applications like artificial intelligence, 5G telecommunications, autonomous vehicles, and Internet of Things (IoT) devices advance, the necessity for smaller, faster, and more efficient semiconductor components grows increasingly critical. Beyond technological progress, several market factors bolster this optimistic outlook. The worldwide shift toward digitalization—accelerated by recent socioeconomic changes—has amplified demand across numerous semiconductor-dependent sectors. Additionally, government policies and initiatives across major regions actively promote investments in semiconductor manufacturing to boost supply chain resilience and reduce reliance on external sources. The expected expansion in manufacturing capacity will significantly impact the global economy and technology ecosystems.

Enhanced production capabilities will better equip semiconductor companies to address supply shortages and meet demand surges associated with emerging technology trends. Scaling advanced process nodes will also enable manufacturers to produce more energy-efficient chips, stimulating innovation across industries from consumer electronics to industrial automation. SEMI’s report underscores the strategic necessity of ongoing investments in fabrication facilities and related equipment. Moving to smaller process nodes requires considerable capital expenditure and technical expertise, including advanced lithography and materials engineering. Collaboration between companies and governments is anticipated to strengthen, supporting this capital-intensive growth. Looking forward, the semiconductor manufacturing sector is on a promising growth trajectory characterized by technological innovation and diversification of capacity. The ambitious expansion in 7nm and below process capabilities reflects the industry's proactive approach to fulfilling future computational and connectivity demands. SEMI’s 300mm Fab Outlook report serves as a crucial resource for industry participants, investors, and policymakers by providing data-driven insights vital for strategic planning and decision-making. In summary, the semiconductor manufacturing industry is entering a phase of sustained growth and transformation. With a projected 7% CAGR in total capacity and a faster 14% CAGR for advanced process nodes, the sector is poised to achieve new operational milestones. This growth aligns with global technological trends and highlights semiconductors’ essential role in driving innovation and economic development worldwide.