Semiconductor Equipment Manufacturing Industry Profile

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, Lam Research Corporation, On Semiconductor 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 based in Japan).

Worldwide sales of semiconductor manufacturing equipment are expected to reach more than $100 billion in 2024 and expect about $130 billion in 2025, according to Semiconductor Equipment and Materials International (SEMI). China is the largest market for equipment spending, followed by Taiwan and Korea.

The US semiconductor equipment manufacturing industry includes about 155 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $9 billion.

COMPETITIVE LANDSCAPE

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 more than 95% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include semiconductor wafer processing equipment, accounting for about 85% of the industry's revenue. Other products include parts of semiconductor manufacturing machinery and ion implantation (about 10%). Manufacturers also collect revenue from specialized ...