Semiconductor Equipment - Berenberg Bank

Applied Materials Inc
Technology Hardware
Figure 7: 21% of the process control market is shared by more than 20
players
100%
80%
60%
40%
20%
0%
2012 2011 2010
Source: Gartner data
KLA Hitachi AMAT Nanometrics Hermes Microvision
Carl Zeiss Rudolph Lasertec Nova Toray
Nikon SII Nano Rave Semilab Omron
JEOL Synopsys SEMES Dainippon Advantest
Others
2007 peak revenue will be exceeded in 2016, driven by strong WFE
spending
AMAT’s semiconductor revenue is more closely linked to the WFE spending cycle
compared with other front-end semi equipment vendors (see Figure 8). We believe
this is due to its more diversified product portfolio compared with peers and
balanced revenue exposure to legacy and growing markets (see Figures 9 and 10).
Figure 8: Semiconductor revenue is closely linked to WFE spending
200.0%
150.0%
100.0%
50.0%
0.0%
-50.0%
-100.0%
2006 2007 2008 2009 2010 2011 2012
ASML ASMI - front end AMAT TEL KLA LAM WFE
Source: Gartner data, Company data
Figure 9: AMAT has the most diversified product portfolio
Semiconductor Equipment AMAT LAM ASMI ASML TEL KLA
Lithography
Y
Photoresist Processing (Track)
Y
Deposition Y Y Y Y
Etch, Clean, and Planarization Y Y Y
RTP and Oxidation/Diffusion Y Y Y
Ion Implanter
Y
Process Control Y Y
Manufacturing Automation and Control Y
Wafer-Level Packaging Y Y Y Y
Die-Level Manufacturing Equipment Y Y
Test Equipment
Source: Company data, Gartner data
100