Semiconductor equipment market surges on AI demand, benefiting Samsung and SK hynix

In a report, UBS assessed that demand for semiconductor manufacturing equipment is rapidly increasing as investment in AI servers and data centers grows. It said this has led the semiconductor equipment industry to enter the early stages of a 'supercycle.' The company cited the expansion of memory-focused demand as the basis for its assessment.

UBS expected total equipment market sales this year to reach 27billion dollars, up 1470% from the previous year. UBS explained that this figure was supported by increased demand for memory equipment. It added that the increase in memory equipment sales was particularly pronounced.

UBS forecast that in 2027the total equipment market would grow to 2000billion dollars. It then predicted that in 2028it would expand to around 2500billion dollars. The report assessed that expanded AI investment is leading to actual investment in production facilities.

The report expected sales of equipment for memory products such as DRAM and NAND flash to 50% surge. It said memory manufacturers are pursuing capacity expansions to meet demand for AI memory. It stated that major companies including Samsung Electronics, SK hynix, and Micron have begun operating new fabs and expanding existing facilities.

The report assessed that the shortage of cleanrooms, which had been identified as a bottleneck to production expansion, is gradually easing. It said wafer fab operations and equipment orders are therefore accelerating. It concluded that demand for equipment is increasing significantly overall.