CSC Financial has identified a dual localization trend in the field of semiconductor equipment and components. Analysts predict market growth for equipment by 23.5% by 2026, reaching $152.2 billion, against the backdrop of an AI-driven cycle.
CSC Financial has identified a dual localization trend in the field of semiconductor equipment and components. Analysts predict market growth for equipment by 23.5% by 2026, reaching $152.2 billion, against the backdrop of an AI-driven cycle.
In its extensive research series, CSC Financial highlights investment opportunities in the semiconductor equipment industry, focusing on two areas of localization: the drive towards domestic production of semiconductor equipment and the localization of critical components within these machines.
SEMI has revised its forecast for the global front-end semiconductor equipment market in 2026, increasing it from 16.5% to 23.5%, which will lead to a volume of $152.2 billion. Furthermore, in the first quarter of 2026, global equipment shipments are expected to reach $36.55 billion, a 14% increase compared to the previous year and a new quarterly record.
SK Hynix announced plans to triple its production capacity by 2034. Micron plans capital expenditures of $27 billion in 2026, representing a 70.3% increase compared to the same period last year. It is anticipated that the combined capital investments of Samsung, SK Hynix, and Micron in 2026 will reach $53.5 billion, which is 16% higher than in 2025.
This significant influx of investment is causing price increases for semiconductor equipment components, while structural power is shifting from end chip markets to equipment and component suppliers.
CSC Financial determines that component manufacturers, being relatively small and having high fixed cost ratios, stand to gain the most direct benefit from rising prices. Key components facing increased lead times include valves, piping, ceramic parts, RF power supplies, and gas boxes. Delays in shipments from foreign suppliers create opportunities for domestic substitution alongside potential price growth. Delivery times for equipment components have reached an unprecedented historical level.
The study also points to promising directions in humanoid robotics as a vertical application for 2026, as the Figure 03 model begins deployment at BMW factories, and mass production of Optimus is approaching. AIDC equipment, including gas turbines, shows clear export trends with growing volumes and prices. Construction machinery continues to show strong performance in both domestic and export markets, noting a 36.2% increase in excavator sales in May. Companies involved in lithium-ion battery equipment are developing a second wave of growth through platform expansion in photovoltaics, 3C, smart logistics, semiconductors, and solid-state battery equipment.
Key risks identified in the study include fluctuations in the domestic macroeconomy, volatility in foreign markets, and possible delays in demand expansion. CSC Financial emphasizes that the topic of semiconductor equipment localization represents a multi-year structural opportunity, not merely a cyclical trend.