New Delhi, London, Hong Kong, Beijing, San Diego, Denver, Seoul, Buenos Aires – June 2, 2022
Global Wafer Fab Equipment (WFE) manufacturers’ revenue will grow 18% in 2022 to exceed $129 billion, according to Counterpoint Research’s Wafer Fab Equipment Revenue Tracker. Critical technology transformations, increasing device and manufacturing complexity, aggressive investments in higher semiconductor performance and active investments in production capacity expansion will drive WFE spending in 2022. The chip shortage will continue to be a concern for the WFE supply chain in 2022.
Commenting on the WFE market, Senior Analyst Ashwath Rao said, “Healthy WFE spending outlook, strong semiconductor demand across segments, rising capital intensity and innovative product portfolio will drive Top 5 WFE manufacturers’ revenue past $100 billion in 2022”. At the same time, the availability of components going into WFE subsystems has been hampered due to supply chain disruptions, thereby increasing the equipment lead time and delaying deliveries. This will impact revenue growth in the first half.
Rao said, “A huge order book, record backlog and demand exceeding capacity will enable equipment manufacturers to expand their capacity to address the shortages and generate higher revenue growth”. A gradual recovery in growth will be observed in the second half of 2022 despite supply chain disruptions due to COVID-19 and heightened geopolitical conflicts. But the impact of cost increase due to labor, components from suppliers and freight charges will lower the gross margin in 2022. Trends such as export regulations between regions will also require close monitoring. Therefore, Q2 growth is expected to be muted.
Priority to manage supply chain constraints in partnership with suppliers and chipmakers will help meet current and future demand by
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
Analyst Contacts:
Ashwath Rao
Dale Gai
Neil Shah
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