UBS Forecasts WFE Supercycle Through 2028, Raises 2026 Revenue to $147B as Memory Chip Demand Surges 27%

According to UBS analyst Timothy Arcuri on June 9, semiconductor equipment makers are entering an early supercycle phase, with wafer fabrication equipment (WFE) revenue expected to reach $250 billion by 2028. Arcuri noted that major chip manufacturers including Micron, Samsung, and SK Hynix are expanding production facilities, with customers providing an unprecedented eight quarters of demand visibility—something Arcuri described as unprecedented in his nearly 30 years covering the industry.

UBS raised its 2026 WFE revenue forecast to $147 billion, representing 27% growth, with DRAM and NAND flash memory equipment revenue surging 50%. The firm projects 2027 total WFE revenue will grow 35% to $200 billion. Arcuri upgraded memory WFE revenue expectations by $10.5 billion for 2027, reflecting accelerating DRAM spending driven by long-term agreements that concentrate new capacity on DRAM production through mid-2028, followed by increased NAND allocation thereafter.