AMEC's Revenue Grows with Advanced Etch Technology Fueling China's Semiconductor Surge

AMEC, China's etching tools giant, forecasts a 30%+ revenue jump in 2023, driven by local semiconductor demand and replacing US parts with domestic ones.

Advanced Micro-Fabrication Equipment Inc. (AMEC), a leading Chinese provider of semiconductor etching tools, is set to witness a significant revenue surge exceeding 30% in 2023, buoyed by robust demand from China's burgeoning semiconductor manufacturing sector. AMEC's strategic focus on core technological innovations has enabled the deployment of an array of sophisticated chip-making equipment to domestic fabs, catering to the critical process of etching in semiconductor production. AMEC's revenue for 2023 is projected to hit 6.26 billion yuan ($879 million), marking a 32.1% increase from the previous year, underpinned by a substantial 8.36 billion yuan in new orders. This growth trajectory is further evidenced by an impressive net profit forecast ranging between 1.7 billion yuan and 1.85 billion yuan, showcasing year-on-year growth of 45% to 58%. Central to AMEC's success is its adeptness in navigating the challenges posed by tightened US semiconductor sanctions. 

The company has embarked on an ambitious strategy to diminish reliance on foreign components, with a commitment to replacing 80% of US-restricted components with locally sourced parts by the end of last year, aiming for a complete transition by 2024. AMEC's product lineup, particularly its core etching tools like the capacitively coupled plasma (CCP) and inductive coupled plasma (ICP) systems, is pivotal to its revenue stream, anticipated to constitute 75% of its total earnings for the year. These etching tools, essential for the intricate process of sculpting microscopic circuits onto semiconductor wafers, have gained substantial traction among Chinese foundries. This is a testament to AMEC's technological prowess and its role in bolstering China's self-sufficiency in semiconductor manufacturing. 

The company's market share in domestic CCP equipment is expected to soar to 60%, a significant leap from 24% in October 2022. Similarly, AMEC's foothold in the ICP equipment market is projected to reach an impressive 75%, marking a dramatic rise from virtually zero. This growth is particularly notable against the backdrop of declining mainland sales of once-dominant US chip equipment manufacturers like Lam Research. AMEC's technological offerings, characterized by advanced etching capabilities and innovation-driven development, cater primarily to China's semiconductor fabs. These fabs are integral components of the nation's strategic push towards self-reliance in semiconductor production, a sector that has become a focal point of international geopolitical tensions and trade restrictions. As such, AMEC not only stands as a technological leader but also as a key enabler of China's ambitions in the global semiconductor arena.

Source: Chinese etching tools giant AMEC sees 2023 sales rise more than 30% on strong demand from mainland semiconductor fabs (yahoo.com)

Applied Materials will regain its No. 1 ranking in the semiconductor equipment market in 2020 from ASML

According to recent published data by The Information Network (Seeking Alpha LINK), Applied Materials will regain its top ranking in the semiconductor equipment market in 2020 from ASML. Fab equipment spend in 2020 was enhanced from pull-ins of sales into China and Taiwan, with 3Q QoQ increases of 22.5% and 36.2%, respectively.

As is well known ASML and Applied Materials does not compete in their  business segments, Lithography (ASML) resp. Deposition & Etch (Applied Materials). Applied Materials has a number 1 spot in PVD, CVD, Epi, CMP and Implant/Doping. However, business segments where Applied Materials so far has not been successful to reach a top 3 position in the past years include:

• Atomic Layer Deposition
• MOCVD
• Furnace 
• Dielectric Etch  
• Spray Processing
• Dielectric Etch (including ALE)
• Wet Stations

As is known, Applied Materials have several times made very serious attempts to enter the ALD segment, but failed several times to compete with ASMI, Tokyo Electron and the South Korean OEMs (Jusung Engineering, Wonik IPS and Eugene Technology. In 2019 Applied Materials announced that it will acquire Japanese Kokusai (LINK) but the final agreement is yet not settled. If successful Applied will have an opportunity to kill 2 birds with one stone:

1. Move in to top 3 spot in ALD

2. Take number 2 spot in Furnace business

Table based on information and own assumptions in the article (Seeking Alpha LINK)

Chinese AMEC 5nm plasma etching tools verified by TSMC

DigiTimes report (LINK) that the Chinese OEM Advanced Micro-Fabrication Equipment (AMEC) announced recently its in-house developed 5nm plasma etching tools have been verified by Taiwan Semiconductor Manufacturing Company (TSMC). AMEC is already among TSMC's equipment suppliers for the foundry's 28nm, 10nm and 7nm processes.

Earlier in 2018 AMEC Introduced the Primo Nanova® System, which is the Company's first ICP etch Product for Chipmakers' most advanced memory and logic (LINK). Besides ICP AMEC has products based on CCP etch and platforms for TSV Etch (LINK).

 AMEC Introduced the Primo Nanova® System (AMEC)

Advanced Micro-Fabrication Equipment Inc. (AMEC)
AMEC is China's leading provider of advanced process technology to global manufacturers of semiconductors and solid-state lighting (SSL) products. Headquartered in Shanghai, the company is an entrenched supplier of dielectric and TSV Etch tools, helping chipmakers build devices at process nodes as low as 7nm. To date, nearly 800 AMEC process units have been positioned at 40 leading-edge semiconductor fabs across Asia. The company is also well established in Europe with AMEC MEMS tools running in production at major IDMs. In addition, with its MOCVD system, the company helps SSL manufacturers build today's most advanced LED products. To learn more about AMEC, please visit www.amec-inc.com.