While Applied Materials will remain the semiconductor equipment market leader in 2004, Tokyo Electron (TEL) could move into first position in Japan, according to the report Asia’s Microelectronics Market: China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Singapore, and Taiwan, recently published by The Information Network, a New Tripoli, PA-based market research company.
“TEL gained market share in 2003 in the Asia-Pacific semiconductor equipment region, growing to 13.5% in 2003 of the $10.8 billion market, up from 11.0% in 2002. In contrast, Applied Materials’ market share decreased from 22.5% in 2002 to 20.0% in 2003, noted Dr, Robert Castellano, President of The Information Network. “In Japan, TEL grew from a 10.5% share in 2002 to a 14.0% share of the $4.5 billion market in 2004, while Applied Materials dropped from 18.3% in 2002 to 14.2% in 2003. With Japan representing 22 percent of world semiconductor consumption, the country has prime silicon real estate.”
Korea represents another trouble spot for Applied Materials in 2004, as ASML could propel itself into the market lead. ASML’s market share grew from 12.5% in 2002 to 17.5% of the $2.3 billion market in 2003. At the same time, Applied Materials’ share dropped from 21.0% in 2002 to 19.5% in 2003. TEL was third in 2003 with a 14.0% share, and strong spending by TEL’s customers could vault it ahead of Applied Materials.
Applied Materials has a comfortable lead in the remainder of the Asia-Pacific countries. It is at least 10 percentage points ahead of its nearest competitor in Taiwan, Mainland China, and the rest of the Asian countries.
“Surprisingly, Applied Materials could lose its market lead on its home turf in 2004, added Dr. Castellano. “Both ASML and Nikon are nipping at its heels – ASML with a 13.0% share in N. America in 2003 and Nikon with a 10.0% share, compared to Applied’s 14.5% share. Both lithography companies have projected huge shipment growth for 2004.”
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