SAN JOSE -- The big just keep getting bigger in the semiconductor equipment industry. A new ranking of chip-production systems suppliers shows the top 10 companies growing 31.1% in 1999 vs. a 12% increase in total revenues for the industry segment last year.
Applied Materials Inc. "beat all expectations by achieving 51% growth in sales last year," noted the annual ranking released this week by VLSI Research Inc. Applied's sales reached $5.5 billion in 1999, more than twice the tool revenue of No.2 Tokyo Electron Ltd., which came in at $2.6 billion, said the San Jose market research firm.
"Collectively, the top 10 suppliers had revenues of $16.4 billion," said VLSI Research, which has placed the total sales in semiconductor equipment markets at $29.6 billion in 1999. The market research firm is predicting a 28% growth in semiconductor equipment revenues in 2000 as chip makers begin to launch new wafer fab projects.
Last year, ASM Lithography of the Netherlands vaulted from 7th to 4th place with $1.3 billion in revenues, according to estimates by VLSI Research. The growth was driven by shipments of deep-ultraviolet steppers, said the research firm. ASML shipped 217 steppers in 1999 compared to 162 in 1998, said VLSI Research.
Only Canon Inc. showed a decline in sales last year, according to the ranking. VLSI Research said the Japanese lithography supplier saw revenues slip 2% to $751 million from sales in 1998.
Top 10 semiconductor equipment suppliers
| 1999 Ranking |
1998 Ranking |
Supplier |
1999 revenues |
% change from 1998 |
| 1 |
1 |
Applied Materials |
$5.457 billion |
51.5% |
| 2 |
2 |
Tokyo Electron Ltd. |
$2.634 billion |
39% |
| 3 |
3 |
Nikon |
$1.430 billion |
10.7% |
| 4 |
7 |
ASM Lithography |
$1.276 billion |
47% |
| 5 |
4 |
Teradyne |
$1.210 billion |
26% |
| 6 |
5 |
KLA-Tencor |
$1.049 billion |
19% |
| 7 |
6 |
Advantest |
$955 million |
5.1% |
| 8 |
8 |
Lam Research |
$894 million |
19% |
| 9 |
9 |
Canon |
$751 million |
-2% |
| 10 |
10 |
Hitachi |
$743 million |
25% |
| Source: VLSI Research Inc. |