Demand for exports will allow the industry to maintain modest revenue growth
Los Angeles, CA (PRWEB) March 21, 2013
The Semiconductor Machinery Manufacturing industry has been highly volatile during the past five years. “Demand from the industry is determined by conditions in the downstream semiconductor manufacturing, which is characterized by rapid technological change,” according to IBISWorld industry analyst Andrew Krabeepetcharat. Industry performance also derives from downstream demand for electronic products that use semiconductors. Revenue is expected to decline at an average annual rate of 0.5% to $1.7 billion during the five years to 2013, largely due to a decline in demand from downstream manufacturing.
Revenue declined quickly in 2009 as semiconductor manufacturers postponed machinery purchases in the midst of the recession. “Downstream demand for products that use semiconductors also experienced weaker demand during the period,” says Krabeepetcharat. Industry revenue fell 33.3% in 2009 but bounced back 32.7% in 2010. Despite a quick recovery, growth quickly slowed and came to a small decline through 2013, with revenue falling 0.9% from the previous year. Over the five years to 2018, industry revenue is projected to grow slowly.
The Semiconductor Machinery Manufacturing industry has a moderate level of concentration. IBISWorld estimates that the four largest industry operators will account for less than 15.0% of industry revenue in 2013, down from about up from about 44.0% in 2008. Several firms left the industry in 2009 with the number of firms falling 10.7% during the year, contributing to the increase in market share concentration. During the five years to 2013, the number of industry firms is projected to decline at an average annual rate of 3.0% to 24 companies. Over the next five years, the number of industry firms is expected to decline at an average annual rate of 2.6% to 21 firms as major companies acquire smaller competitors and other firms move operations overseas.
Exports account for a large share of revenue, accounting for about 54.1% in 2013. International trade of industry products fell heavily during the economic downturn as global demand fell and semiconductor manufacturers delayed capital investments. During the past five years, the value of exports is expected to increase at an average annual rate of 2.1% to $923.5 million. Imports also declined during the economic downturn, increasing at an average annual rate of 1.0% to $243.0 million in 2013.
For more information, visit IBISWorld’s Semiconductor Machinery Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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 http://www.ibisworld.com or call 1-800-330-3772.