Crossed wires: Demand for machinery will continue to be highly volatile, dampening growth

The Semiconductor Machinery Manufacturing industry produces equipment necessary for the production of semiconductors and undertakes activities such as wafer processing and packaging. The industry is characteristically volatile and manufacturers have had difficulty amid international competition and the necessity to constantly improve technology. Over the next five years, key trends in downstream markets will affect industry manufacturers...purchase to read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 12-17
-10.3%
Forecast Growth 17-22
Profit
Employment
13,639
Businesses
170

Industry Threats & Opportunities

  • Declines during the period have masked the cyclical nature of industry performance
  • Tablets have dominated the domestic computer market over the past five years
  • Per capita disposable income and consumer confidence are expected to increase
  • Industry Report - Industry Investment Chapter

    A low level of capital intensity characterizes the Semiconductor Machinery Manufacturing industry. Among industry manufacturers, the average company will spend $0.05 on capital for every dollar spent on wages, a decrease from $0.08 in 2012. IBISWorld estimates that in 2017, wages will account for 27.4% of industry revenue, while depreciation is expected to account for 1.4% of revenue.The manufacturing operations of businesses usually consist of procurement, assembly, test, quality assurance and manufacturing engineering. As a result, both skilled and manual labor is required. Although IBISWorld estimates that the portion of production workers has been falling during the past few years, the proportion of skilled labor has increased, driving the average industry wage up. In ...purchase to read more.

    Additional Insights for the Semiconductor Machinery Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Semiconductor Machinery Manufacturing Industry are

  • Development of new products
  • Ability to quickly adopt new technology
  • Guaranteed supply of key inputs
  • IBISWorld analysts also discuss how external factors such as Demand from semiconductor and circuit manufacturing and Price of semiconductor and electronic components in the Semiconductor Machinery Manufacturing industry impact industry performance..

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    What's in this report

    What is the Semiconductor Machinery Manufacturing Industry?

    This industry manufactures equipment used to make semiconductors, more commonly known as chips or integrated circuits. Products manufactured include wafer-processing equipment, semiconductor assembly and packaging equipment and other semiconductor-making machinery.

    Industry Products
  • Wafer processing equipment
  • Ion implantation and microlithography semiconductor equipment
  • Other Semiconductor Manufacturing Equipment
  • Industry Activities
  • Manufacturing etching equipment
  • Manufacturing microlithography
  • Manufacturing semiconductor assembly and packaging machinery
  • Manufacturing chemical vapor deposition (CVD) equipment
  • Manufacturing surface mount machinery for making printed circuit boards
  • Manufacturing thin-layer deposition equipment
  • Manufacturing wafer-processing equipment
  • Manufacturing photolithography equipment
  • Manufacturing microelectromechanical systems (MEMS) equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from semiconductor and circuit manufacturing
  • Price of semiconductor and electronic components
  • Private investment in computers and software
  • Trade-weighted index

  • Current Performance
  • Industry volatility
  • Global demand and trends
  • International competition and import penetration
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand flows from downstream
  • Global demand
  • Focus on profitability
  • Technological improvements and returning to US manufacturing
  • Table: Semiconductor Machinery Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Semiconductor Machinery Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Computer Manufacturing
  • Computer Peripheral Manufacturing
  • Communication Equipment Manufacturing
  • Audio & Video Equipment Manufacturing
  • Semiconductor & Circuit Manufacturing
  • Circuit Board & Electronic Component Manufacturing

  • Key Selling Industries
  • Ball Bearing Manufacturing
  • Electrical Equipment Manufacturing
  • Electrical Equipment Wholesaling

  • Products & Services
  • Other Semiconductor Manufacturing Equipment
  • Wafer processing equipment
  • Ion implantation and microlithography semiconductor equipment
  • Chart: Semiconductor Machinery Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Memory producers
  • Exports
  • Foundries
  • Other
  • Logic
  • Chart: Major Market Segmentation for the Semiconductor Machinery Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Semiconductor Machinery Manufacturing

  • Basis of Competition
  • Select buyers and sellers
  • Design, research and development
  • Patent and trademark protection
  • Close link with downstream industries
  • Price
  • Specialization

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Semiconductor Machinery Manufacturing Industry

  • Industry Globalization
    Lam Research Corporation, Applied Materials Inc., Tokyo Electron Ltd.,
  • Table: Lam Research Corporation - financial performance
  • Table: Applied Materials Inc. - financial performance
  • Table: Tokyo Electron Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Semiconductor Machinery Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Semiconductor Machinery Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Private investment in industrial equipment and machinery (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Book-To-Bill Ratio
  • Measures the amount of orders the industry currently has compared to the amount of orders the industry can process.
  • Fab
  • A fabrication plant where semiconductors are manufactured.
  • Nanometer (Nm)
  • A measurement equal to one billionth of a meter, commonly used when referring to wafer size.
  • Photovoltaic
  • Technology used to generate energy by converting sunlight directly into electricity (solar power).
  • Semiconductor
  • Commonly used in electronic products and often known as integrated circuits and chips, these silicon elements conduct electricity.
  • Wafer
  • Part of a semiconductor, often in the form of a silicon crystal.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Semiconductor Machinery Manufacturing contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

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    This report on Semiconductor Machinery Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Semiconductor Machinery Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Semiconductor Machinery Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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