A survey of the top headlines in semiconductor production reveals some import trends shaping semiconductor equipment spending. Right now, the market is experiencing steady growth in near term projections. A few of the trends driving this growth are listed below with brief commentary on why each is important.
1) Spending on Fab Equipment is on the Rise
As reported by the micro-electronics industry association, SEMI, growth in fab equipment spending is expected to increase by as much as 11% in 2017. With more companies investing in semiconductor tools and equipment, the semiconductor industry, and other micro and nano-technology industries, are poised for a strong opening to the New Year.
2) Secondary Semiconductor Equipment Market Expands
A recent study highlighted in Solid State Technology shows a trending growth in the secondary market for semiconductor tools despite OEMs’ investment focus on newer technology. What this means is that even though much of the major OEMs’ spending is centered on new technology, there remains a significant demand for the tools to support legacy manufacturing.
In addition, the tribal knowledge required to service and operate older technology is still heavily relied upon. While this may lead to a shortage of resources and support from OEMs for older equipment, it presents a great opportunity for OEM-licensed partners that support legacy and refurbished semiconductor tools. More and more companies with legacy needs will be turning to these approved vendors for equipment and support needs.
3) Fastest Growing Region for Semiconductor Fab Spending will be Europe and Mideast
With an increase in spending projected around 60%, which SEMI attributes to ramping 10nm production, Europe and the Middle East are set to see the largest growth in semiconductor fab equipment spending in 2017. Companies targeting these top regions should be prepared to take advantage of this surge in equipment spending.
While the semiconductor equipment industry continues its growth, Ichor Systems is prepared to support the expanding need for engineering and manufacturing new technologies as well as procuring and managing legacy equipment.
If you would like more information regarding our legacy semiconductor equipment services, please reach out to us.
References:
SEMI http://www.semi.org/en/fab-equipment-spending-ascending
Solid State Technology http://electroiq.com/blog/2013/10/managing-legacy-fabs-and-the-role-of-secondary-equipment/
