Semiconductor Equipment Manufacturing
Competitive Landscape
Demand is driven by semiconductor production, consumer interest in electronic products, and corporate spending on information technology. The profitability of individual companies depends on managing costs while investing in new technologies. Large companies have advantages in offering broad product lines to leading semiconductor manufacturers. Small companies can compete effectively by serving niche manufacturers. The industry is capital-intensive: average annual revenue per employee is about $500,000.
Opportunities
Device Proliferation - The proliferation of electronic products such as smartphones and e-readers presents new opportunities for many equipment manufacturers. Such devices require a great degree of processing...
Business Challenges
High R&D Costs - Semiconductor equipment manufacturers are significantly challenged by rising R&D costs. Changes in the semiconductor industry -- including smaller chip sizes, new materials, additional applications, and...