Global Semiconductor Wafer Polishing and Grinding Equipment Market 2017-2021
About Semiconductor Wafer Polishing and Grinding Equipment
Semiconductors form the building blocks of electronic devices. They are the crucial core of any electronic component. Semiconductor capital spending, essentially, refers to the capital investments by vendors in the semiconductor domain. The entire capital spending market is made up of capital equipment assets and other assets. Other assets include land, building, and other essential infrastructure, except the capital equipment required to create semiconductor manufacturing facilities. Capital spending in the semiconductor industry is estimated to grow significantly from 2017. 2016 was the year of the cyclical trend where investments declined substantially due to the oversupply of semiconductor devices.
Technavio’s analysts forecast the global semiconductor wafer polishing and grinding equipment market to grow at a CAGR of 7.10% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global semiconductor wafer polishing and grinding equipment market for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Semiconductor Wafer Polishing and Grinding Equipment Market 2017-2021
Technavio recognizes the following companies as the key players in the global semiconductor wafer polishing and grinding equipment market: Applied Materials, EBARA, Lapmaster, and Logitech.
Other Prominent Vendors in the market are: Entrepix, Revasum, TOKYO SEIMITSU, and Logomatic.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is use of NEMS. NEMS are devices that integrate electro and mechanical systems at a nanoscale. NEMS have a wide range of features such as significantly lower power consumption and production costs, due to their relatively small size. This makes them suitable for devices such as ultrasensitive sensors and high-frequency resonators. NEMS can also be used in a number of devices such as energy harvesters, accelerometers, gyroscopes, drug delivery systems, and portable power generators.”
According to the report, one driver in the market is incentives and discounts for long-term customers. Semiconductor equipment manufacturers undertake relationship-based sales. The selling price of such equipment is usually in the range of $100,000-$1,000,000. Hence, manufacturers look to develop long-standing relations with customers purchasing their offerings. They develop such relations by offering discounts and incentives to clients for the future deals. Equipment manufacturers target customers that tend to procure equipment of a significant sum, accounting for around 5%-10% of their total sales. Semiconductor device manufacturers may consider repeat purchase in the future, attracted by these discounts and incentives.
Further, the report states that one challenge in the market is high development costs. One of the major challenges faced by the global semiconductor wafer polishing and grinding equipment market is the high development costs associated with the manufacturing of semiconductor equipment. Semiconductor wafer polishing and grinding equipment requires polishers, grinders, and rotating platens, which are expensive to procure. Also, since there are only a few suppliers of those components, vendors need to invest heavily in acquiring these products. The increasing costs of polishing and grinding consumables, such as slurries and pads, add to the overall cost. Each equipment costs around a million dollars, making the initial investment for various foundries considerably high. Such equipment will also have a high repair and maintenance cost, which further adds to the overall cost.
Applied Materials, EBARA, Lapmaster, Logitech, Entrepix, Revasum, TOKYO SEIMITSU, and Logomatic.