Monday, September 5, 2016

ALD Financials: Applied Materials and Lam Research - Head to head ...

Here is an interesting head to head comparison by Seeking Alpha between the two leading Equipment Manufacturers in Semiconductor industry - Applied Materials and Lam Research. Neither have until now considering the opportunities and resources that they had been that successful in ALD. 

The big mystery  - Applied Materials is actually dominating much of all : Epi, PVD, Implant, CMP, RTP and CD-SEM businesses, but has only like 2% of the ALD Market and Etch is also not looking that good. So it will be interesting to follow how the new Olympia platform takes on the competition.

Most inserting, while the OEM market a sa whole is concentrated into the Top 5 players (Applied Materials, Lam Research, ASML, Tokyo Electron and KLA-Tencor) that all together has a market share of  >70% ALD ist totally different. Here the sub Top 5 players constitute >65% of the market (ASMI, Kokusai, Jusung, Aixtron, Picosun, Ultratec, Beneq, Oxford Instruments, NCD and others).

Table 1 - AMAT and LRCX Shares for Etch and Deposition (PECVD)
Etch ($M) 2012 Revenues Share 2015 Revenues Share
Applied Materials 395 10% 1,130 18%
Lam Research 1,745 45% 3,250 52%
Total Market 3,840
6,250





PECVD ($M) 2012 Revenues Share 2015 Revenues Share
Applied Materials 700 55% 1,070 57%
Lam Research 430 34% 600 32%
Total Market 1,275
1,880





Total Etch-Deposition 2012 Revenues Share 2015 Revenues Share
Applied Materials 1,095 21% 2,200 27%
Lam Research 2,175 43% 3,850 47%
Total Market 5,115
8,130





Source: The Information Network (theinformationnet.com)