Gartner Dataquest Says Worldwide Wafer Fab Equipment Market Grew 84 Percent in 2000.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--May 7, 2001

Driven by strong growth in Asia/Pacific due to increased foundry demand, the worldwide wafer fab equipment market reached $33 billion in 2000, an 84 percent increase over 1999 revenue, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB).

"Despite the strong growth in 2000, the industry is experiencing a significant slow down and this should make 2001 a year of repositioning," said Dean Freeman, principal analyst of Gartner Dataquest's semiconductor research. "Companies that are well positioned to take advantage of the technology buys that typically take place in down years should see market share gains."

There were few changes in the top ten wafer fab equipment company rankings (see Table 1). The total market share of the top ten increased slightly in 2000 from 68.9 percent to 70.5 percent. This is the third consecutive annual market share increase for the top ten vendors. Applied Materials remained in the top spot with 25.3 percent of the market. Canon dropped a spot in 2000, moving down to No. 8 while Novellus moved up to No. 7.

Table 1
Top 10 Worldwide Vendor Revenue from Shipments
of Total Wafer Fab Equipment

(Millions of U.S. Dollars)
1999 2000                    1999     2000    2000 Market 1999-2000
Rank Rank  Company         Revenue  Revenue   Share        Growth
                                            (Percent)    (Percent)
1     1  Applied Materials 4,542    8,397     25.3         84.9
2     2  Tokyo Electron    1,805    3,738     11.3        107.1
3     3  Nikon             1,203    1,979      6.0         64.5
4     4  ASM Lithography   1,122    1,842      5.6         64.2
5     5  KLA-Tencor          861    1,761      5.3        104.5
6     6  Lam Research        739    1,418      4.3         91.9
8     7  Novellus            522    1,229      3.7        135.4
7     8  Canon               633    1,118      3.4         76.6
9     9  Dainippon Screen    494    1,090      3.3        120.6
14   10  Hitachi             387      799      2.4        106.5
         Others            5,656    9,799     34.7         73.2
         Total Market     17,964   33,170    100.0         84.4
Note: Due to rounding, statistics may not add to totals shown.
Source: Gartner Dataquest (May 2001)

The Asia/Pacific region was the No. 1 region in the world, growing nearly 90 percent. Europe was close behind at nearly 89 percent growth. Shipments into North America were behind the world average, growing at just over 71.3 percent, suggesting a continued outsourcing trend to the foundries in Asia.

"There was a great deal of consolidation in 2000, and it is likely this trend will continue this year as companies look to expand their core competencies and technology portfolio needed to provide the integrated processes required for semiconductor fabrication," said Freeman.

Additional information on this market is available in the Gartner Dataquest Alert "2000 Wafer Fab Equipment Market Heats Up to 84.4 Percent Growth." This document provides top-tier market share results by region.

This document is produced by Gartner Dataquest's Semiconductors Worldwide program. This program combines memory, microcomponents, logic, ASIC, analog, discrete device, RF and optical segments into a complete industry picture. Products, suppliers, start-ups, technologies, regional consumption, applications and emerging technologies are all covered in this broad program. To purchase the document or subscribe to this program, please call 408-468-8000.

Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software and services sectors of the global information technology industry.

Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenues of $859 million. For more information, visit www.gartner.com.