Semiconductor Equipment - Berenberg Bank

Suess Microtec AG
Small/Mid-Cap: Technology Hardware
Acquisitions and divestments
SUSS has completed three acquisitions in recent years to enhance its
competitiveness (see Figure 11). In our opinion, all three deals are positive for
SUSS, as they have all helped it optimise its end-market exposure and focus on its
core target markets, including advanced packaging, 3D integration, MEMS and
LED.
Figure 11: SUSS’s M&A history
Name Amount Description Synergy for Suess
2012 Acquire
Tamarack Scientific
Co.,Inc
$9.34mn
Develops, manufactures and
distribute UV projection
lithography equipment
- Same target end market, advanced packaging, 3D
integration, MEMS and LED market,
-enhance product portfolio, supplying a comprehensive
range of equipment for mid/back end process
2010 Dispose Test system $6.29mn
Supply measurement and test
systems for semiconductor
industry
-Test system market was too competitive for any
suppliers to secure decent level of profit.
-Reduced exposure to high saturated testing market,
maintain profitability level
2010 Acquire HamaTech APE $5.08mn
Source: Company data, Berenberg
Leading photomask cleaning
equipment supplier
- helped SUSS to break into front end equipment
industry,
-set a strong fundamental for SUSS being the only
EUV mask cleaning tool supplier today.
Manufacturing plants
SUSS used to operate four different production facilities:
• Palo Alto (US) – photomask cleaning division (now sold);
• Waterbury (US) – wafer bonders;
• Garching (Germany) – mask aligners, coater/developers;
• Vaihingen (Germany) – mask aligners, coater/developers.
After it acquired HamaTech in February 2010, including its factory building at
Sternenfels, SUSS decided to consolidate its main operation (everything bar
ultraviolet projection and laser technology) in two locations. The transition was
completed in 2011, and SUSS currently operates from the following facilities:
• Garching (Germany) – mask aligners;
• Sternenfels (Germany) – wafer bonders, coaters/developers, photomask
equipment;
• Corona (US) – ultraviolet projection and laser technology.
In our view, this transition is positive for SUSS, as the integration of production
facilities has enabled it to reduce costs and simplify its corporate structure.
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