The semiconductor test equipment market has matured. You would expect an industry that came of age in 1980s would have matured over the last 35 years and in fact it has. The semiconductor test equipment industry has experienced consolidation, a sure sign of maturation. Two factors are important to consider with regard to it becoming a mature industry. First, market share shifts of 10 points or more are extremely difficult and slow to occur. The value of incumbency is very high and to achieve growth faster than competitors means uncovering new market opportunities through innovation of your existing products, applying existing technologies into adjacent or new markets, or through merger or acquisition.
A variety of technology and business trends impact the test equipment business cycles. In the full paper, which we invite you to download [hyperlink], we analyzed the impact of the following drivers n detail:
- IC unit volume expansion
- Equipment lead times
- Degree of customization of SOCs
- Chinese market
- Replacement of home-grown ATE by commercial solutions
- OSAT business model