Fab Equipment Components and Parts Vendors in China
By Lily Feng, SEMI
The majority of new fab capacity added in China will be for 300 mm and 200 mm wafer fabs, with such fabs accounting for well over 80% of China’s total wafer capacity by 2010. Over this period, fab equipment spending, for both new and used equipment, is expected to trend in the $2.5 billion to $3.0 billion range per year. Overseas equipment companies are very active in China—providing sales and service support to customers, and in some examples, operating R&D programs. Meanwhile, local vendors for fab equipment have emerged in recent years to explore the opportunities in the 200 mm and 300 mm tool market. Initiatives and programs are in place to encourage the development of domestic infrastructure to support local equipment vendors and fab tool maintenance and refurbishment.
A growing number of companies in China are now devoted to manufacturing components and parts used in semiconductor equipment and consumed in equipment refurbishment and maintenance. Most of these companies have developed their components and parts manufacturing capabilities in the past couple of years as demand for a local source has increased significantly. To better understand this dynamic market, SEMI surveyed 32 companies in China offering components and parts manufacturing services for both front- and back-end semiconductor manufacturing.
According to statistics obtained in the survey, total sales revenues of these components and parts manufacturers reached an estimated USD $450 million in 2006. This figure includes estimates for company components and parts sales into the FPD, solar cell, medical equipment, and aviation sectors as well.
Other key observations include:
- Major overseas semiconductor equipment suppliers are very active in China and dominate component and parts sales to the leading wafer fabs to ensure product quality.
- Some manufacturers provide a “total package” related to component and parts from refurbishing services to parts cleaning.
- Local semiconductor component and parts services have expanded into related industries such as FPD and solar cell manufacturing.
The number of local components and parts companies, including foreign-owned companies, is growing significantly, as there is a need for a local supply chain to support the growing China market. In addition, a local supply chain can relieve, to a certain level, the high-duty charges associated with imported parts.
Significant adoption of locally made components and parts at leading fabs is not an immediate trend, as it is estimated that locally made parts make up just 10% of the total parts consumed currently by these fabs. Without a trusted equipment supplier certification, local components and parts suppliers must go through a long qualification process by fabs, which involves extra effort and carries potential risk. Local fabs tend to use components and parts that do not directly come into contact with the wafer, when the fab is not under full utilization.
Going forward, it is expected that demand by local fabs, overseas equipment suppliers, local equipment suppliers, and providers of used equipment will be the driving force in the on-going development of the local components and parts supply chain in China. As semiconductor and related industry investments continue in the growing China market, the supply chain to support equipment manufacturing and maintenance will further develop.
All of the information in this article was derived from a recently completed market research study, China Fab Equipment Components and Parts Vendors Overview, produced by SEMI. The report highlights trends related to the development of the components and parts manufacturing market in China, along with profiles of 32 companies in China manufacturing. SEMI conducted in-person interviews with all the 32 components and parts manufacturers in China. In-depth company interviews included validation through input from equipment suppliers, fabs, local industry associations, government agencies, and other industry sources within China. Local components and parts manufacturing covers more than 15 SEMI® components and parts categories and serve both front- and back-end processes.
To order your copy of China Fab Equipment Components and Parts Vendors Overview, please call SEMI Global Sales and Services at 1.408.943.6901. You can also visit www.semi.org and select STORE from the horizontal menu to find order information for this report. To contact Lily Feng, please email email@example.com.