Goldman Sachs Increases Wafer Front-End Equipment Forecast for 2026

Goldman Sachs has revised its forecast for wafer front-end equipment (WFE) for the years 2026 to 2028, projecting figures of $150 billion, $218 billion, and $281 billion respectively. This marks an increase of 6%, 17%, and 35% compared to earlier estimates. The firm also adjusted its year-on-year growth expectations for these years to 36%, 45%, and 29%, up from previous forecasts of 28%, 32%, and 12%.

The report identifies DRAM and advanced process foundry as key short-term growth drivers. In the DRAM sector, capital expenditure forecasts for major players Samsung and SK Hynix have been increased by 22% and 19% respectively, largely due to the demand generated by HBM4 mass production. Additionally, TSMC's annual capital expenditure has been raised by $8 billion as it prepares for the mass production ramp-up of its N2 process.

In the medium term, NAND and logic sectors, including Terafab, are expected to contribute significantly to growth. The forecast also incorporates an initial phase equipment investment of approximately $16.8 billion pledged by SpaceX and Tesla. Goldman Sachs remains optimistic about global semiconductor equipment stocks, recommending companies such as Applied Materials, Lam Research, ASML, Tokyo Electron, ASMI, BESI, Lasertec, and Ebara.

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Source: KLEA News