Regional
All signs point up
Purchases by semiconductor manufacturers for
According advance chips is propelling the market for a
to the
rapid recovery in 2010, according to the report
“The Global Market for Equipment and Materials
Information
for IC Manufacturing,” recently published by The
Network,
Information Network, a New Tripoli, PA-based
market research company.
semiconductor
“Several signs are pointing to a recovery,
regions should
but the most telling are our leading indicators, a
compilation of economic data from two dozen
expect a
countries that we have adjusted over the past 24
rapid recovery
years to accurately predict inflection points in
the semiconductor equipment market,” noted
next year.
Dr. Robert Castellano, president of The equipment market is lithography, and revenues
Information Network. for 2008 reached $5.4 billion dollars according
Capital expenditures (capex) can be an to our analysis. Advanced immersion 193nm
42
important gauge of the health of the tools that are capable of making the most
semiconductor industry and the semiconductor- advanced circuits today can cost tens of millions
www
equipment suppliers. We noted previously that of dollars each.
.eur for 2009, conditions had improved enough for The market leader, ASML, announced in Q2
oasiasemiconductor
Intel, Samsung, TSMC, and UMC to raise their that the average selling price for its new systems
capex plans. was 31.1 million Euros or roughly $45 million.
The table below shows the Information ASML noted it sold four new immersion systems.
Network’s estimates of 2010 capital expenditure Looking deeper into the announcement, ASML
for the top chip manufacturers. The list includes noted in its 6-K to the SEC that “In Q2 2009,
the top spenders. With improved outlook for ASML’s net sales of EUR 277 million included 4
.com
the economy and industry, semiconductor new and 6 used systems.”
purchases are expected to be positive. That means the average selling price (ASP)
“We nevertheless are cautious about 2010, of an immersion system is $45 million.
square4
Issue VI 2009
because all we see going forward are technology Interestingly, our calculations show that the ASP
purchases, rather than capacity purchases. was $42 million in 2008. While the dollar price is
Utilization is increasing, but with 31 fab closures exchange related, clearly ASML has not reduced
in 2009, this is analogous to increased prices in 2009 as may have been expected AND
productivity due to layoffs,” added Dr. the chip companies are obviously willing to pay
Castellano. “The lithography sector will drag the price of these lithography tools.
the market as the 200 $5 million i-line tools
Capex CY 2009 CY 2010
typically sold in a year as capacity purchases will
not be sold. Excess equipment inventory from
Intel $4.7 B $4.9 B
the 31 fab closures in recent times will also
Samsung $4.5 B $4.5 B
weigh down the market.”
TSMC $2.3 B $2.3 B
Another indication of the improving Toshiba $900 M $2.1 B
conditions for both the semiconductor and
GlobalFoundries $690 M $1.1 B
equipment companies is how much the chip
Inotera $350 M $1.1 B
companies are willing to spend on state-of-the-
Subtotal $13.4 B $13.9 B
art technologically advanced equipment to make
Rest of companies $5.0 B $7.6 B
their newest products.
The largest sector in the semiconductor
Total $18.4 B $21.5 B
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