2010 Semiconductor Equipment and Materials Market Review and Outlook
By Lara Chamness, Senior Market Analyst, SEMI
Semiconductor Market Trends
Coming off of two successive negative years for the semiconductor industry, 2010 provided a much needed and welcomed turn of events; device revenues increased 32 percent, materials revenues grew 25 percent, and the new equipment market grew a record 148 percent. Taken together the semiconductor equipment and materials market reached its second highest level ever.
Value of Semiconductor Equipment & Materials
(in US$ Billions)
Worldwide sales of semiconductor manufacturing equipment totaled $39.54 billion in 2010, representing a year-over-year increase of 148 percent. Equipment spending in 2010 posted sales just over $3 billion shy of the high of $42.77 billion reached in 2007 and represents the fourth highest level recorded for semiconductor equipment manufacturers; no small accomplishment coming off of spending levels last seen in the early1990’s just one year earlier.
For the second year in a row, the Taiwan market spent more on semiconductor equipment than any other region, growing 157 percent over 2009 to reach US$11.19 billion. Korea claimed the number two spot with $8.33 billion in equipment sales. North America slipped to third place reaching $5.76 billion. China continued with its expansion by growing 287 percent over 2009, totaling $3.63 billion. Spending for Japan, China, Rest of World, were in the $4 billion range. Rest of World (ROW) includes Singapore, Malaysia, and other areas in Southeast Asia.
Semiconductor Equipment Markets – Regional Trends
If equipment spending trends in 2007 to 2010 are compared, South Korea, Taiwan, Rest of World, and China increased their share of the total market in 2010 versus 2007, while Japan’s share is down to11% and North America maintained its share.
The global semiconductor materials market grew 25 percent in 2010 reaching $43.55 billion, breaking the high set in 2007.
On a regional basis, Japan remains the largest materials consuming region on a revenue basis because of its significant installed IC fabrication base and advanced packaging operations. Not surprisingly Taiwan grew at the fastest rate, 33 percent, followed closely by Korea at 31 percent last year.
2010 Regional Materials Market
Initial data for this year are promising: equipment bookings and billings are at higher levels than for the same period last year. Materials and device revenues also are staying strong. SEMI is currently forecasting that new equipment revenues will grow 16 percent this year to reach $45.81 billion and grow another 3 percent in 2012 to total $47.14 billion. Growth expectations for materials are more moderate: 6 percent for this year and 4 percent in 2012, resulting in a 2012 materials market totaling $47.72 billion.
2010 was indeed a remarkable year for all segments in the semiconductor industry. Areas in Asia-Pacific, most notably Taiwan, Korea, Rest of World, and China, are adding semiconductor manufacturing and packaging capacity at faster rates than other regions. This in turn is driving a regional shift in the semiconductor equipment and materials markets. Initial indications are that growth, yet at much more moderate rates, will continue for this year and the next.
Portions of this article were derived from the SEMI Worldwide Semiconductor Equipment Market Statistics (WWSEMS) and the Material Market Data Subscription (MMDS). These reports are essential business tools for any company keeping track of the semiconductor equipment and material market. Additional information regarding this report and other market research reports can be found at www.semi.org/marketinfo.
May 3, 2011