YG PRESS NEWS – Semiconductor equipment industry: a new hope
OUTLINE
- The semiconductor-related subsystem, component, and module markets began to grow in Q2 2024 following a subdued Q1, establishing a positive growth trajectory for the year.
- Despite a 12% quarter-on-quarter revenue drop in Q1 2024, Wafer Fab Equipment revenue for the entire calendar year is expected to grow by 1.3% year-on-year.
- Test equipment lead times are returning to normal levels, putting buyers in a strong position to place orders on short notice.
Yole Group has recently updated its semiconductor equipement monitors: Semiconductor Equipment Subsystems Market Monitor, Wafer Fab Equipment Market Monitor and Semiconductor Test Equipment Market Monitor. Check out the Q2-2024 updates now!
SEMICONDUCTOR EQUIPMENT SUBSYSTEMS: Q2 2024 puts 2024 on a growth path following a subdued Q1
According to Yole Group, in the Semiconductor Equipment Subsystems Market Monitor, Q2 2024 showed moderate quarter-over-quarter revenue growth of 1.4%. OEM inventory levels saw a significant reduction, a trend we anticipate will continue over the next few quarters, bringing inventory back to healthier levels. Capital expenditures in memory and logic are increasing, and global fab utilization rates are rising. Along with gradually increasing orders at subsystem suppliers, this will sustain and amplify positive momentum in the second half of 2024. Notably, HBM memory could help lift the DRAM and possibly NAND memory markets out of their current slump…
WAFER FAB EQUIPMENT: Q1 2024 saw a 12% quarter-over-quarter decline in WFE revenue, BUT a gradual increase is anticipated in each subsequent quarter of 2024
The Wafer Fab Equipment Market Monitor observes that the 2024 Wafer Fab Equipment (WFE) revenue is projected to grow by 1.3% year-on-year, reaching US$108.1 billion, which serves as a stable foundation before a surge expected in 2025. This strong revenue is supported by ongoing significant investments in legacy nodes, while investments in DRAM, NAND, advanced logic, and their packaging are also accelerating. Among all WFE shipment destinations, Greater China’s domestic and foreign investments help maintain the WFE market at elevated levels. The year 2024 began on a challenging note for equipment vendors, with overall WFE revenue in Q1 2024 declining by 12% quarter-over-quarter to US$25.2 billion. However, an increase in WFE billing is anticipated for the second half of 2024, with projections of US$25.3 billion in Q2 2024 (+1% QoQ), US$27.7 billion in Q3 2024 (+9% QoQ), and US$29.9 billion in Q4 2024 (+8% QoQ)…
Order activity is improving as test equipment utilization recovers
In the Semiconductor Test Equipment Market Monitor Q2 2024, Yole Group asserts that the year has started slowly, with sales of test-related equipment remaining flat for four consecutive quarters, still 25% below the 2022 peak. However, test equipment utilization rates are rising and nearing the level that will trigger additional capital spending. On the memory side, demand for HBM DRAM is rebounding as chipmakers seek additional capacity. While overall demand for memory test equipment has been volatile in recent quarters, there is strong growth for final test equipment related to memory technology transitions and high-performance memory (DDR5 and HBM). Continued weakness in smartphones and other consumer electronics is dampening overall demand for non-memory test equipment. The highlights of Q1 and Q2 2024 were in automotive and industrial applications, as well as test handlers with thermal management capabilities for high-performance computing (HPC). Lead times are returning to normal, putting buyers in a strong position to place orders at short notice…
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