Strong Growth Outlook, Rich Valuation Tell Semi Equipment Story

The primary drivers of wafer fab equipment (WFE) demand are the strength of semiconductor demand and the existing capacity level. Other factors, such as constraints on selling semiconductors to China, the possibility of a recession, interest rates that have an effect on consumer spending, or the diversion of consumer funds to leisure and/or travel activity affect one or both of the primary factors. Technology transitions constitute an additional driver for the industry because they require fresh equipment f ...