SEMI signals continued semiconductor investment as AI reshapes global industry

The semiconductor industry continues to experience strong investment momentum as artificial intelligence drives demand for manufacturing capacity, advanced technologies and skilled workers, while governments and industry organisations seek to strengthen regional semiconductor ecosystems.

By Semi News

The latest announcements from SEMI point to an industry being reshaped not only by AI-related chip demand, but also by the infrastructure required to manufacture those devices, the workforce needed to support expansion, and efforts to connect emerging semiconductor companies with established players.

At the European level, SEMI is calling for the proposed Chips Act 2.0 to provide a broader and more predictable framework for investment across the semiconductor value chain. In the US, a new Industry Advisory Committee has been established to help address the workforce requirements associated with expanding domestic microelectronics manufacturing. Meanwhile, SEMI’s latest equipment data shows continued capital investment in semiconductor production, while a partnership with Silicon Catalyst aims to strengthen links between semiconductor startups and the established industry.

Together, the announcements illustrate the breadth of the semiconductor industry’s current expansion, extending from wafer production and manufacturing equipment to skills, policy and early-stage innovation.

Equipment investment continues to accelerate
One of the clearest indicators of current industry momentum comes from SEMI’s Worldwide Semiconductor Equipment Market Statistics (WWSEMS) report.

Global semiconductor equipment billings reached US$40.53 billion in the second quarter of 2026, representing a 23% increase compared with the same quarter in 2025 and an 11% increase from the first quarter of 2026. The result marked a second consecutive record quarter for global semiconductor equipment billings.

SEMI attributes the continued growth in equipment demand to investment in manufacturing capacity associated with AI, as semiconductor companies and their customers expand infrastructure to support rising demand for computing.

The geographical breadth of the growth is also significant. SEMI reported that investment was increasing across Asia, North America and Europe, highlighting the increasingly global nature of semiconductor capacity expansion.

The equipment figures provide an important indication of where semiconductor industry spending is being directed. While AI has become a major source of demand for advanced processors and memory, the resulting growth is also creating requirements further upstream in the manufacturing ecosystem.

New or expanded semiconductor fabs require a wide range of manufacturing equipment, process technologies and materials. As a result, the current AI investment cycle is translating into demand across a much broader portion of the semiconductor supply chain than chip designers and manufacturers alone.

The equipment market therefore provides one measure of how AI-related demand is feeding through into physical manufacturing capacity.

Wafer demand follows AI expansion
The same underlying trend can be seen in SEMI’s latest data on silicon wafer shipments.

Worldwide silicon wafer shipments increased by 7.4% year-on-year in the second quarter of 2026, reaching 3,573 million square inches (MSI) compared with 3,327 MSI in the second quarter of 2025. Shipments also increased by 9.1% compared with the first quarter of 2026, when they stood at 3,275 MSI.

SEMI’s Silicon Manufacturers Group said the growth was being driven by AI-related demand extending beyond advanced logic and memory into areas including power devices and photonics.

That broader demand profile is important because AI infrastructure increasingly encompasses more than the processors used to run AI models. Power management, networking, optical communications and other supporting technologies are becoming increasingly important as data-centre computing requirements grow.

At the same time, SEMI reported signs of recovery in industrial and automotive markets. However, memory pricing pressures were contributing to constrained demand in the PC and smartphone markets.

The combination of these trends suggests a semiconductor market in which different application segments are moving at different speeds. AI-related investment is providing a major source of growth, while some traditional electronics markets remain subject to more challenging conditions.

For wafer manufacturers, the overall direction nevertheless remains positive. Device manufacturers are continuing to invest in capacity expansion, with SEMI expecting silicon wafer demand growth to continue.

Europe looks to Chips Act 2.0
Against this backdrop of global capacity expansion, SEMI is also seeking changes to Europe’s policy framework.

On 8 September, SEMI Europe renewed its call for European policymakers to use the proposed Chips Act 2.0 to strengthen semiconductor competitiveness and supply-chain resilience. Its latest position paper sets out nine policy recommendations covering the semiconductor ecosystem.

The organisation argues that European semiconductor competitiveness needs to be considered across the entire value chain, encompassing design, materials, equipment, manufacturing and advanced packaging.

SEMI says several elements of the European Commission’s draft legislative text already reflect priorities raised by the organisation and its members, but believes the proposal provides an opportunity for further strengthening during the co-legislative process.

Among SEMI’s recommendations is an expanded First-Of-A-Kind framework covering the complete semiconductor value chain. It is also calling for faster and more predictable investment and permitting procedures, greater industry participation in Chips Act governance and what it describes as an ambitious and balanced EU budget.

Other recommendations address Europe’s production-cost disadvantage, demand-side initiatives, supply-chain monitoring and workforce development.

The emphasis on the whole value chain is significant. Semiconductor resilience is increasingly being considered in terms of access to equipment, materials, manufacturing processes, packaging capabilities and engineering expertise, rather than simply the number of semiconductor fabs located within a particular region.

For Europe, the policy challenge is therefore not solely about attracting wafer fabrication capacity. It also concerns whether the wider ecosystem can support investment and innovation at sufficient speed and scale.

SEMI says it will continue working with European institutions, member states and industry stakeholders during the legislative process.

Workforce becomes a strategic constraint
Investment in fabs and equipment also creates another requirement: people with the technical expertise to design, operate and maintain increasingly sophisticated semiconductor manufacturing infrastructure.

In the US, the National Network for Microelectronics Education (NNME) has established its inaugural Industry Advisory Committee to help shape a national semiconductor workforce strategy.

The initiative is supported by the US National Science Foundation in partnership with the Department of Commerce, with the SEMI Foundation serving as the NNME’s Hub Operator. The committee brings together representatives from semiconductor manufacturers, equipment and materials companies, universities, community colleges and workforce organisations.

The move comes as the US experiences substantial investment in domestic semiconductor manufacturing and corresponding demand for skilled workers.

According to a national workforce landscape analysis cited by SEMI, the US semiconductor industry could face a talent gap of approximately 127,000 to 157,000 workers by 2030.

The composition of the advisory committee reflects the breadth of skills required. Its members include representatives from Micron Technology, the University of Illinois Urbana-Champaign, Qnity, Lam Research, Columbus State Community College, ASML, SEMI, GlobalFoundries, AMD, Rensselaer Polytechnic Institute, Samsung Semiconductor, Intel and Apple.

The committee will identify emerging workforce challenges, validate employer requirements, inform education and training strategies, strengthen connections across the semiconductor ecosystem and provide input into national workforce initiatives.

This approach reflects the increasingly specialised nature of semiconductor manufacturing. Expanding production capacity requires not only engineers and scientists, but also technicians, equipment specialists, process experts and other personnel able to support advanced manufacturing operations.

The NNME is intended to create a more coordinated national system linking employers, education providers, workforce organisations and regional partners, with the aim of developing industry-aligned talent pathways.

Connecting startups with the semiconductor ecosystem
While policy, manufacturing capacity and skills represent established elements of semiconductor competitiveness, another SEMI initiative is focused further upstream on innovation.

SEMI and semiconductor accelerator Silicon Catalyst have signed a strategic partnership intended to strengthen connections between semiconductor hardware startups, investors, manufacturers and technology companies.

The memorandum of understanding was signed at SEMICON Taiwan 2026. The partnership is designed to provide SEMI members with access to Silicon Catalyst’s startup portfolio and innovation ecosystem, while giving Silicon Catalyst companies greater access to SEMI’s global network of companies, investors, technology partners and industry resources.

The collaboration will initially involve activities in Taiwan, the Americas and Europe, with the intention of extending participation across SEMI’s global network.

Startup-focused programmes will also be developed around SEMICON exhibitions, including Startup Zones, investor engagement programmes and technology showcases. The initiative will begin with the Silicon Startups Zone at SEMICON Taiwan and subsequently expand to other major SEMICON events.

The rationale is closely connected to the pace of technological development associated with AI. SEMI says semiconductor companies increasingly require faster access to emerging technologies, new business models and new sources of innovation.

Silicon Catalyst brings a specialised focus on semiconductor hardware startups. Founded in 2015, the accelerator says it has engaged with more than 5,000 semiconductor startups worldwide, with more than 1,500 applications and over 150 portfolio companies admitted.

The partnership consequently provides a mechanism for connecting early-stage semiconductor technologies with the much larger manufacturing, investment and technology ecosystem represented by SEMI.

An industry being reshaped on multiple fronts
Taken together, the latest SEMI announcements illustrate how the semiconductor industry’s current expansion extends well beyond the immediate increase in demand for AI processors.

Equipment billings are reaching record levels as manufacturers invest in additional capacity. Silicon wafer shipments are rising, with AI demand extending into power and photonics applications. European policymakers are being urged to strengthen the investment and regulatory environment across the semiconductor value chain. In the US, workforce organisations are attempting to address a potentially significant shortage of skilled personnel. At the same time, startup initiatives are seeking to shorten the path between emerging semiconductor technologies and established industry players.

The common factor is the scale and breadth of investment required to support the next phase of semiconductor development.

AI is providing a major source of demand, but meeting that demand requires an ecosystem capable of supplying manufacturing equipment, wafers, materials, advanced packaging, power technologies, photonics, engineering expertise and new semiconductor architectures.

The latest SEMI figures indicate that investment in this ecosystem is already substantial. The policy and workforce initiatives highlighted by the organisation suggest that industry competitiveness will increasingly depend on whether regions can turn that investment into sustainable manufacturing and innovation capacity.

For semiconductor manufacturers and suppliers, the result is an industry environment in which capacity, technology, talent and access to emerging innovation are becoming increasingly interconnected. The next stage of semiconductor growth will therefore depend not simply on producing more chips, but on strengthening the wider infrastructure required to design, manufacture and commercialise them.