Semiconductor Machinery Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated

New York, NY - January 14, 2014 -- Semiconductor machinery manufacturing encompasses the necessary equipment for semiconductor production, including wafer-processing, assembly and packaging. According to IBISWorld Industry Analyst Darryle Ulama, “The industry is characteristically volatile; demand depends on conditions in downstream semiconductor manufacturing, which undergoes rapid technological change and shifts in the global supply chain.” Industry performance also relies on downstream demand for electronic products, such as TVs, computers and cell phones. Although revenue is expected to expand slowly at an annualized rate of 1.4% to $11.4 billion in the five years to 2013, this figure masks wide fluctuations in growth rates over the period.

The recession dampened overall demand for electronic goods and semiconductor production, leading to a decrease in capital investment for semiconductor machinery purchases. Industry revenue contracted 32.9% in 2008, followed by a 41.2% decrease in 2009. Downstream demand for products that use semiconductors were weak during this period, as consumers cut back on discretionary spending. However, indications of a recovery emerged in 2010, bolstered by growth in smartphone technology, which led to a solid 62.4% growth in that year. The industry has since faced declines as semiconductor manufacturers move operations abroad to take advantage of more competitive labor costs and booming tech markets in Asia. In 2013, industry revenue is expected to decline 3.5%.

In the next five years, semiconductor machinery manufacturers will continue to be impacted by trends in its downstream markets. Industry revenue is expected to grow within the time period. Two competing trends will impact the industry. First, semiconductor manufacturing, the industry's largest market, will continue to move overseas to anticipate the significant market potential for electronics in Asia. Second, technological development in semiconductor production, such as the extreme ultraviolet (EUV) lithography, will drive growth domestically. “China, Taiwan and Korea are among the industry's top export destinations, with consumption levels of electronics in these countries expected to rise rapidly over the next five years,” says Ulama. Industry exports are expected to increase in the five years to 2018. Concurrently, innovations in semiconductor technology for smartphones, tablets and cloud computing will push demand for more advanced machinery and encourage capital investment.

A medium level of market share concentration characterizes the Semiconductor Machinery Manufacturing industry. IBISWorld estimates that the top industry players are Applied Materials Inc. and ASML Holding NV. Many firms exited the industry in the five years to 2013, contributing to an expanding concentration of participating companies. During the five years to 2013, the number of industry enterprises declined at an average annual rate of 1.5% to 185. Further declines are expected over the next five years as major companies acquire smaller competitors and other firms move operations abroad.

For more information, visit IBISWorld’s Semiconductor Machinery Manufacturing in the US industry report page.

IBISWorld industry Report Key Topics

The Semiconductor Machinery Manufacturing industry manufactures equipment used to make semiconductors, more commonly known as chips or integrated circuits. Such equipment includes: wafer-processing equipment, semiconductor assembly and packaging equipment, and other semiconductor-making machinery.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide.