Gartner Says Worldwide Semiconductor Manufacturing Equipment Sales Experienced a 10 Percent Increase in 2003
STAMFORD, Conn., April 8, 2004 - Worldwide semiconductor manufacturing equipment sales totaled $22.8 billion in 2003, a 10.3 percent increase from 2002 sales, according to Gartner, Inc. Gartner analysts attributed the increased revenue to improved supply and demand fundamentals, which rekindled demand for equipment in the second half of 2003.
The three major sectors in the semiconductor manufacturing equipment market experienced revenue increases in 2003. Wafer fab equipment sales (the largest sector) grew 3.6 percent in 2003. In the back-end, packaging and assembly equipment increased 30.5 percent and automated test equipment (ATE) grew 39.4 percent.
"Semiconductor manufacturing equipment shipments were focused on upgrades at existing facilities, production capacities for 0.13 micron or 3000mm, advanced packaging capacity and system-on-chip test capability," said Klaus Rinnen, vice president for Gartner's semiconductor manufacturing and design research group.
Vendors experienced mixed results in 2003. The market was kinder to companies in longer lead-time segments. Despite a 12 percent decline in revenue, Applied Materials was the No. 1 vendor based on global semiconductor equipment sales in 2003 (see Table 1). Tokyo Electron had a strong year because of its strength in the dynamic RAM (DRAM) segment, as well as its home market. Advantest, the world's largest test company, experienced the strongest growth among the top-tier vendors, as its revenue increased 114 percent.
Table 1
Top 10 Vendors of Worldwide Semiconductor Equipment by Revenue Estimates (Millions of Dollars)
1
1
Applied Materials
3,210.5
14.1
3,674.6
17.8
-12.0
2
2
Tokyo Electron
2,175.2
9.5
1,795.3
7.7
-10.1
3
3
ASML
1,434.7
6.3
1,596.3
7.7
10.1
4
5
Nikon
1,300.7
5.7
801.4
3.9
62.3
5
10
Advantest
1,076.7
4.7
502.2
2.4
114.4
7
6
Novellus Systems
804.8
3.5
796.9
3.9
1.0
8
8
Hitachi High Technologies
610.1
2.7
529.2
2.6
15.3
9
7
Lam Research
601.3
2.6
588.9
2.8
2.1
10
11
Agilent Technologies
578.1
2.5
467.9
2.3
23.5
Others
10,025.9
43.9
8,732.1
42.2
14.8
Total Market
22,823.3
100.0
20,693.8
100.0
10.3
Source: Gartner Dataquest (April 2004)
On a regional basis, semiconductor manufacturing equipment demand in Japan rose 39 percent in 2003. Europe saw the second strongest growth with 16 percent, driven by a revival in device equipment spending by European-headquartered companies and also investments into Europe. Despite widespread anticipation of growth opportunities in China, increased spending in Asia/Pacific rose just 5.5 percent.
The Americas region, including North and South America, suffered a 17.5 percent decline in equipment sales in 2003. This was the third consecutive year of reduced equipment spending in the region. The 2003 decrease was concentrated largely in wafer fab equipment. Spending on back-end equipment was unchanged.
Gartner analysts said they expect stronger sales in 2004. Worldwide semiconductor equipment revenue is projected to grow 40 percent this year.
"We expect a continuation of strong demand in the back-end segment and finally a strong revival for wafer fab equipment this year," Rinnen said. "With economic conditions improving, end-user application demand continues to expand. Low inventories and tight supplies have established an advantageous pricing environment. With profitability strengthening throughout the industry, spending is ramping up as semiconductor manufacturers adjust to meet rising demand."
Additional information is available in the Gartner Dataquest Alert "Semiconductor Manufacturing Equipment Sales Expanded in 2003." This Alert provides final rankings for the top 20 companies worldwide. This document is available on Gartner's Web site: Semiconductor Manufacturing Equipment Sales Expanded in 2003.
This research is produced by Gartner Dataquest's Semiconductors Manufacturing and Design program. This research program, which is part of the overall semiconductor research group, provides a comprehensive view of the entire semiconductor industry, from manufacturing and design to device and application market trends. To subscribe to this service, please contact Pia Rieppo at 408-468-8710 or at Pia Rieppo. More information on Gartner's semiconductor research can be found in the Gartner Semiconductor Focus Area at http://www.gartner.com/semiconductors.
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