Semi equipment sales expected to show near 96% growth in 2010

By Suzanne Deffree, Managing editor, news -- EDN, July 12, 2010

The recovery is well under way and secure in the semiconductor equipment market, according to the latest data from VLSI Research Inc.

The research company recently report on Q1, stating that the semiconductor equipment market grew 43% sequentially and 188% year over year in the quarter to $10.4 billion. VLSI said it further expects semiconductor equipment sales to reach $47.6 billion in 2010, a 95.8% increase from 2009.

Applied Materials continued to lead semiconductor equipment sales in Q1 with IC manufacturing equipment and related service revenues up 43% sequentially and 137% year over year with sales of $1.74 billion, VLSI said.

According to VLSI, Teradyne achieved the highest quarter-over-quarter growth in Q1 among the top 10 suppliers, driven by strong demand of its SOC test systems. Teradyne's sales of $289.7 million were up 46% sequentially and 269% year over year in Q1.

VLSI also noted Tokyo Electron, Lam Research, and Nikon as additional companies with exceptional growth in Q1. VLSI noted that although European equipment suppliers experienced high growth rates on a Euro basis, the significant Euro-to-dollar exchange rate shift impacted to their revenue conversion to US dollars negatively.

Worldwide IC manufacturing equipment sales in millions of dollars

Rank	Company	Q4	Q1	Q/Q growth	Y/Y growth
1	Applied Materials	1214.1	1740.7	43%	137%
2	Tokyo Electron	848.4	1151.2	36%	84%
3	ASML	858.1	1026.3	20%	329%
4	Lam Research	487.2	632.8	30%	263%
5	KLA-Tencor	410.9	446.4	9%	46%
6	Nikon	272.9	359.7	32%	-15%
7	Dainippon Screen Mfg	350.4	345.7	-1%	140%
8	Teradyne	197.9	289.7	46%	269%
9	ASMI	249.7	258.9	4%	123%
10	Novellus	223	252.9	13%	188%
	Others	2126.5	3860.5	82%	188%
	Total	7239.1	10364.7	43%	188%

Source: VLSI Research Inc, Chip Market Research Services