Semiconductor equipment spending is set to reach $135.2 billion in 2026, with Lam Research, KLA, and ASML positioned as primary beneficiaries of the shift toward advanced memory and process-control infrastructure.
Lam Research is the most direct beneficiary of the current memory-equipment cycle due to its extensive use of etch and deposition systems in DRAM and NAND manufacturing. As memory structures become more complex, such as in high-aspect-ratio NAND, the demand for Lam's specialized equipment increases, directly capturing the projected 29% and 28% growth in DRAM and NAND spending respectively.
Lam provides the most direct leverage to the fastest-growing WFE categories (DRAM and NAND) through its essential etch and deposition systems.
ASML maintains an unmatched technological moat through its exclusive ability to produce extreme-ultraviolet (EUV) lithography systems. While its revenue is less directly tied to memory than Lam's, it benefits from both logic and memory spending, as advanced DRAM production increasingly utilizes EUV technology alongside leading-edge logic manufacturing.
Yes, memory manufacturers use ASML's EUV lithography selectively for advanced DRAM production, providing a secondary growth driver alongside logic.
Global wafer-fabrication-equipment (WFE) spending is projected to climb 16.9% to a record $135.2 billion by 2026, fueled by surging demand for advanced DRAM and NAND memory. While logic spending remains significant, memory-focused capital investments are growing at a faster pace to support AI-driven high-bandwidth memory (HBM) production.
The rise of AI and high-bandwidth memory (HBM) requires manufacturers to invest heavily in new cleanroom infrastructure, advanced packaging, and complex deposition and etch processes to support larger die sizes and stacked memory.