Bank of America has updated its semiconductor market forecast, projecting the total addressable market to reach $3,2 trillion by 2030. This figure is an increase from the previous estimate of $2,7 trillion and an earlier projection of $2 trillion.
The bank anticipates the market will nearly double from its current valuation of approximately $1,7 trillion within four years. The compound annual growth rate for the 2026 to 2030 period is now estimated at 18%, compared to the previous forecast of 14%.
Spending on wafer fabrication equipment for 2026 is now projected at $156 billion, up from the prior estimate of $144 billion. By the end of the decade, this annual spending figure is expected to rise toward $360 billion.
The growth is driven by demand for memory chips and data-center components linked to AI infrastructure. The bank reports that customer orders and capacity commitments remain strong, dismissing concerns regarding a potential slowdown in AI-related spending.
Analysts identified several companies expected to benefit from these trends, including Nvidia, AMD, Marvell, Analog Devices, onsemi, Micron, Lam Research, Applied Materials, and Intel. Equipment suppliers like Lam Research and Applied Materials are noted for their role in chip fabrication.
