|Last Quarterly Update:||1/16/2017|
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Companies in this industry make wafer processing equipment, semiconductor assembly and packaging equipment, and other machinery used to produce semiconductors. Major companies include Applied Materials, GT Advanced Technologies, Lam Research Corporation, and Veeco Instruments (all based in the US), as well as ASML Holding (the Netherlands) and Hitachi High-Technologies Corporation and Tokyo Electron Limited, both of Japan.
Worldwide sales of semiconductor manufacturing equipment were estimated to total about $37 billion in 2016, according to Semiconductor Equipment and Materials International (SEMI), an industry association. Taiwan is the largest market for equipment spending, followed by South Korea and Japan.
The US semiconductor equipment manufacturing industry includes about 170 companies with combined annual revenue of about $6 billion.
Demand is driven by semiconductor production, consumer interest in electronic products, and corporate spending on information technology. The profitability of individual companies depends on managing costs while investing in new technologies. Large companies have advantages in offering broad product lines to leading semiconductor manufacturers. Small companies can compete effectively by serving niche manufacturers. The US industry is highly concentrated: The top 50 companies account for about 95% of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include etching and micro-lithography equipment, thin-layer deposition machinery, wafer processing equipment, semiconductor assembly and processing machinery, and surface mount machinery for the manufacture of printed circuit boards. Many providers additionally offer software and services. Some companies have leveraged their expertise in semiconductor equipment to manufacture ...
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