Investor Presentation_ Semiconductor Production Equipment_ Outlook of SPE Industry

Summary of Semiconductor Production Equipment Industry Conference Call Industry Overview - The conference focused on the Semiconductor Production Equipment (SPE) industry, highlighting its attractive outlook as assessed by Morgan Stanley [1][4][28]. Key Companies Discussed - Tokyo Electron: Ranked 7th among Japanese companies by market value with a market cap of JPY 11,911 billion and FY23 sales of JPY 1,831 billion [3][6]. - Other notable companies include Toyota Motor, Sony Group, NTT, and Mitsubishi UFJ Financial Group [3][6]. Market Size and Growth - The global market size for Semiconductor Production Equipment is projected to reach $102 billion** in 2023, with the overall semiconductor market valued at **$529 billion [16][18]. - The SPE market is experiencing strong growth, with significant contributions from leading companies like ASML, Applied Materials, and Lam Research [19][75]. Market Share Insights - In 2023, the market shares for top SPE companies were as follows: - ASML: 15.8% - Applied Materials: 19.8% - Lam Research: 15.4% - Tokyo Electron: 13.2% [19][20]. - Japanese manufacturers maintain a competitive edge in both front-end and back-end processing equipment, with Tokyo Electron leading in several categories [66][69]. Technological Trends - The industry is witnessing a shift towards advanced packaging technologies, such as CoWoS (Chip on Wafer on Substrate) and HBM (High Bandwidth Memory), which are expected to drive future growth [83][84]. - The emergence of chiplet technology is also highlighted, allowing for more efficient chip designs and manufacturing processes [45][47]. Investment and Policy Environment - There is a pressing need for domestic investment in semiconductor manufacturing, particularly in light of geopolitical tensions and the desire to reduce dependence on Chinese manufacturing capabilities [58][59]. - The U.S. government is implementing restrictions on SPE exports to China, which is influencing market dynamics and investment strategies [58]. Financial Performance and Projections - The conference noted that companies like Disco and SCREEN HD are experiencing robust business growth, with expectations for sales to exceed initial forecasts due to high demand for advanced packaging equipment [83]. - The semiconductor market is projected to continue its upward trajectory, driven by technological advancements and increasing demand for electronic devices [28][30]. Conclusion - The Semiconductor Production Equipment industry is positioned for significant growth, supported by technological innovations and strategic investments. Companies like Tokyo Electron are well-placed to capitalize on these trends, making the sector an attractive investment opportunity [1][4][28].