CMP to see healthy annual growth

01/01/1998

Worldwide highlights

CMP to see healthy annual growth. Global sales of slurry abrasives used in CMP are projected to increase at a rate of 25-30% a year through 2002, with annual growth extending five to 10 years beyond that, according to Fairfield, NJ-based Kline & Company Inc.`s study, Outlook for CMP Technology and Materials, 1997-2002. Many industry sources report that sales of consumable products used in CMP, including slurries and pads, are expected to reach $1 billion globally in the next 10 years, with sales tripling to $245 million by 2000.

The top 10 automatic test equipment (ATE) companies achieved total sales of $4 billion in 1996 (see table). Nearly 70% of the $5.2 billion in total ATE sales to the chip industry was held by these companies. Advantest again held the top spot, breaking the billion dollar mark. Companies just under the top 10 were Tokyo Seimitsu, Asia Electronics, Electro Scientific Inc., Delta Design, and Yokogawa Electric.

Semiconductor precursor materials forecast. The total market for semiconductor precursor materials and devices was valued at $510 million in 1996 and is expected to grow to $931 million in 2002, representing an average annual growth rate (AAGR) of 10.5% (see table), according to Business Communications Co. Inc. (BCC). Silicon remains in a class by itself, and the principal single crystal wafer material precursor polycrystalline silicon dominates total sales in the available market. Polysilicon is forecast to grow to $655 million in 2002 and was valued at $430 million in 1996, creating an AAGR of 7.3% The segment seeing the strongest growth is that for epitaxial precursor materials in the fabrication of compound semiconductor devices. BCC forecasts growth of over 30% AAGR through 2002, with revenues of $200 million.

September chip sales up again. Sales of semiconductors ticked up again in September, with world revenues climbing to $11.797 billion - an increase of 1.6% over August levels, and a full 14.7% above year-ago sales (see table), said the Semiconductor Industry Association`s monthly Global Sales Report. This is the fifth consecutive month in which 1997 sales exceeded those from 1996. The European market surged 4.4% over August levels, while the fast-growing Asia-Pacific sector was up 3.9%. The Americas were up 1.9%, while Japan saw a 2.9% decline month-to-month. Japan also showed the poorest year-to-year improvement, growing only 1.3% over September, 1996. All other regions showed solid double-digit percentage growth, with Asia-Pacific posting a 22.4% jump. SIA president George Scalise said the results "are in line with our recent 1997-2000 worldwide forecast," and said the 1997 recovery in chip sales picked up steam, "thanks to the continued expansion of the personal computer market, the growth of telecommunications, and surging interest in the Internet."