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April 9, 2011

Semiconductor Capital Spending Grows by 143%: Garter

The worldwide semiconductor equipment market grew 143 per cent in 2010 to nearly $41 billion as the market recovered from the industry slowdown of the previous two years, according to final results from Gartner Inc.

All major market segments grew significantly in 2010 with automatic test equipment (ATE) sales up by 149 per cent, wafer fab equipment (WFE) sales up by 145 per cent and sales of packaging assembly equipment (PAE) up by 127 per cent.

The share of the top ten semiconductor capital equipment companies rose nearly 2 points in 2010, accounting for 63.4 per cent of total revenue, up from 61.6 per cent in 2009 (see Table 1).

Applied Materials retained the No. 1 position in the market, but it could not increase its share because it did not directly capitalise on the strong lithography spending in 2010. 
  • ASML was the fastest-growing company among the top ten semiconductor capital equipment vendors in 2010. The company moved from No. 3 to No. 2 based on the strength of immersion lithography for double patterning, growing to 13 per cent market share.
  • Tokyo Electron dropped to the No. 3 position, despite gaining some additional market share. Tokyo Electron's dominance in track and the associated growth was unable to offset relatively slower spending by some of its key customers.