Semiconductor Machinery Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld

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The Semiconductor Machinery Manufacturing industry is highly dependent on both domestic and global downstream demand from semiconductor manufacturers, and therefore, revenue dipped and spiked from the impact of the global recession over the past five years; moreover, in the five years to 2019, increased offshoring will detract from growth in global demand due to an improved economy. For these reasons, industry research firm IBISWorld has added a report on the Semiconductor Machinery Manufacturing in Canada industry to its growing industry report collection.

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Demand for exports will allow the industry to maintain modest revenue growth

The Semiconductor Machinery Manufacturing industry supplies capital equipment and machinery to semiconductor manufacturers that produce the necessary inputs for a range of electronic products. Although industry revenue is expected to increase at an annualized 6.7% to $1.7 billion, this growth mostly represents the industry's recovery from its 2009 low. As with much of Canada's manufacturing sector, industry operators are losing competitiveness to foreign players, which often enjoy lower labour and production costs. This translates to lower-cost imports, which have threatened the industry. As a result, Semiconductor Machinery Manufacturing industry revenue has decreased since 2012 and is expected to decline an additional 1.0% in 2014.

According to IBISWorld Industry Analyst Darryle Ulama, “The entire electronics supply chain is highly globalized, creating a fiercely competitive business environment that embeds the industry and its downstream markets.” Industry performance is closely tied to trends in semiconductor production, which ultimately depends on global demand in electronics. Rising incomes throughout emerging markets have increased demand for consumer electronics, while wireless technology and smartphone adoption accelerates in developed economies; the result has been an increase in demand for semiconductor inputs and, subsequently, semiconductor machinery over the past five years. However, because semiconductor manufacturing activity is concentrated abroad, the industry must compete for lucrative export markets with established machinery manufacturers based in the United States and Taiwan. In 2014, exports are expected to account for 57.8% of industry revenue, demonstrating the importance of client markets outside Canada.

“In the five years to 2019, demand for semiconductors in medical devices, vehicles and tablets will increase industry revenue,” says Ulama. Nevertheless, the industry's domestic position will continue to be threatened by foreign competition, precipitating the exit of industry operators or relocation to overseas facilities. As such, in the five years to 2019, the number of enterprises is expected to decline. Those that remain are expected to invest heavily in the development of advanced machinery, including extreme ultraviolet lithography (EUV).

For more information, visit IBISWorld’s Semiconductor Machinery Manufacturing Canada industry report page.

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IBISWorld industry Report Key Topics

The Semiconductor Machinery Manufacturing manufactures equipment used to make semiconductors, more commonly known as chips or integrated circuits. Such equipment includes wafer-processing equipment, semiconductor assembly and packaging equipment and other semiconductor-making machinery.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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