SAN JOSE, Calif. --- The worldwide market for wafer fab equipment fell to $16.5 billion, a 31.6 percent decline from 2001 revenue of $24.1 billion, market research organization Gartner Inc. said today (April 7, 2003). But Gartner's rankings showed that market leader Applied Materials and ASML were both able to grow market share and ASML even recorded a jump in sales.
"All major segments were affected by the industry decline in 2002. Typically, in a slow year, there are a few segments that give the industry a bit of a boost," said Dean Freeman, principal analyst for Gartner, in a statement. "In 2002, some emerging technologies, such as silicon germanium epitaxy and atomic layer deposition, demonstrated growth and a few of the technology segments associated with copper dual damascene grew, but as a whole, all segments failed to inspire the industry."
Although the market had shown signs of improvement early in 2002 those improvements never materialized, the market watcher said. In consequence the wafer equipment industry has suffered one of the most severe downturns in its highly volatile history.
European litho equipment maker ASML was the only top-tier vendor to grow in 2002 jumping from the No. 5 position in 2001, to the No. 3 position, according to the Gartner rankings. ASML's move pushed KLA Tencor and Nikon each down one spot to the fourth and fifth places, respectively. Applied Materials, ASML and Novellus were the only companies in the top ten to grow market share.
All of the regions experienced significant declines in 2002. Europe was the hardest hit region declining 46 percent from 2001. Japan suffered the most in the Asia/Pacific region as equipment sales declined nearly 45 percent. Taiwan suffered the least with only a 10 percent decline because of a second quarter buying spree. The rest of Asia/Pacific benefited from the activity in China and declined by only 12.8 percent. The Americas performed a little better than the overall market, declining 29 percent.
"After two years of back-breaking declines, the industry is looking for some positive news. Hopefully, tight capacity at 180 nm and below, coupled with the under investment in 2002 will provide the foundation for a more positive 2003," said Freeman in the statement.
Top fab-tool suppliers in 2002
| 2002 rank |
Company |
2002 sales |
2001 sales |
% of market |
% change |
| 1 |
Applied |
$3.672 billion |
$4.919 billion |
22.2% |
<25.3%> |
| 2 |
TEL |
$1.671 billion |
$2.639 billion |
10.1% |
<36.7%> |
| 3 |
ASML |
$1.596 billion |
$1.273 billion |
9.7% |
25.4% |
| 4 |
KLA-Tencor |
$1.209 billion |
$1.887 billion |
7.3% |
<35.9%> |
| 5 |
Nikon |
$801 million |
$1.525 billion |
4.8% |
<47.5%> |
| 6 |
Novellus |
$797 million |
$1.138 billion |
4.8% |
<30%> |
| 7 |
Lam |
$589 million |
$1.131 billion |
3.6% |
<47.9%> |
| 8 |
Hitachi |
$529 million |
$633 million |
3.2% |
<16.4%> |
| 9 |
Canon |
$516 million |
$1.196 billion |
3.1% |
<56.9%> |
| 10 |
Dainippon Screen |
$398 million |
$776 million |
2.4% |
<48.8%> |
| -- |
Other suppliers |
$4.75 billion |
$7.038 billion |
28.7% |
<-32.5%> |
| -- |
TOTAL |
$16.528 billion |
$24.155 billion |
100% |
<-31.6%> |
| Source: Gartner Dataquest |