Semiconductor Equipment Manufacturer

Semiconductor equipment manufacturer are basically the companies that manufacture the equipment used by Semiconductor companies  to make memory / Logic which in turn is used in phones,cars, electronics, etc.

Equipment Companies
ASML, LRCX , AMAT, KLAC                     
Memory/Logic Manufacturer
AMD/Intel/Micron/NVDA/TSEM/ Texas Instrument
Phone/Electronics Maker

With significant amount of semiconductor gadgets used in our daily lifestyle (From phones to cars) , this IT segment can be one of the major growth driver in coming years. Our daily devices generates huge amount of data which in turn used by other companies like google , apple , facebook, etc. Basically, Data can be considered as a currency . You do need to store/process/analyze "Data" for this , so more eemiconductor - logic/memory .In coming years, semiconductor will change completely the way we live our life and will be significant  growth driver.

From SIA :

May 4, 2020—The Semiconductor Industry Association (SIA) today announced worldwide sales of semiconductors totaled $104.6 billion during the first quarter of 2020. First-quarter sales decreased 3.6 percent compared to the previous quarter, which is in line with typical seasonal trends, and increased 6.9 percent compared to the first quarter of 2019. Global sales for the month of March 2020 were $34.9 billion, an increase of 0.9 percent compared to the previous month’s total and 6.9 percent more than sales from March 2019. Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. SIA represents 95 percent of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.

We can invest in this segment through above categories. Out of these, I believe the equipment manufacturer are the ones which define trends. It's possible that a new/existing company one like NVDA / AMD /Intel can have the most amazing chip to analyze and process the data or Chinese memory manufacturer flood the market with cheap memory to get the maximum market share. But they will all buy the equipment from these semiconductor equipment manufacturers. 

In the health care crisis (like covid-19) , Large/Mega cap are most prepared to weathers the storm, so below are the Large/Mega cap for equipment manufacturer :


Let's Look at these four individually ...........


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