Global semiconductor equipment spending hits record $36.55 billion in Q1 2026; India eyes larger role in supply chain
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Global semiconductor equipment billings reached a record $36.55 billion in the first quarter of 2026, underscoring sustained investments in chip manufacturing capacity and technology upgrades amid growing demand for artificial intelligence (AI) and advanced computing applications.
According to SEMI's Worldwide Semiconductor Equipment Market Statistics (WWSEMS) report, semiconductor equipment billings rose 14% year-on-year during the quarter. The growth was driven by strong demand from AI-related applications, advanced logic chips, DRAM memory, and advanced packaging technologies.
"The strong start to 2026 reflects continued industry investment in the capacity and infrastructure needed to support AI-driven semiconductor growth. Record first-quarter billings highlight ongoing momentum in leading-edge manufacturing and advanced packaging," said Ajit Manocha, President and CEO of SEMI.
The record spending reflects the industry's confidence in long-term semiconductor demand and points to continued expansion of global manufacturing capacity. Investments across wafer fabrication, packaging, testing, and semiconductor equipment are expected to strengthen supply chains and accelerate technological innovation worldwide.
India, meanwhile, is seeking to position itself as a key player in the next phase of semiconductor growth. Under the India Semiconductor Mission (ISM), the government has approved 12 semiconductor and electronics manufacturing projects spanning semiconductor fabrication, ATMP/OSAT facilities, display manufacturing, and component ecosystems.
The proposed ISM 2.0 programme is expected to further bolster India's capabilities in semiconductor manufacturing, advanced packaging, materials, equipment, and chip design, enabling the country to capture a larger share of the global semiconductor value chain.
"The record global semiconductor equipment spending reflects strong confidence in long-term semiconductor demand driven by AI, high-performance computing, automotive electronics, and digital transformation. As countries expand manufacturing capacity and invest in advanced technologies, India has a unique opportunity to integrate more deeply into global semiconductor supply chains," said Ashok Chandak, President of SEMI India and the India Electronics and Semiconductor Association (IESA).
He added that the foundation being laid through the India Semiconductor Mission, coupled with the next phase of policy support, could help India emerge as a significant hub for semiconductor design, advanced packaging, manufacturing, supply-chain development, and ecosystem growth.
Industry experts believe rising global investments in advanced packaging and semiconductor manufacturing infrastructure will create new opportunities for Indian companies in chip design, equipment engineering, materials, manufacturing services, and electronics production.