Double Trouble
"All major segments were affected by the industry decline in 2002,” says Dean Freeman, principal analyst for Gartner's semiconductor research group. “Typically, in a slow year, there are a few segments that give the industry a bit of a boost. In 2002, some emerging technologies, such as silicon germanium epitaxy and atomic layer deposition, demonstrated growth and a few of the technology segments associated with copper dual damascene grew, but as a whole, all segments failed to inspire the industry."
ASML was the only top-tier vendor to grow in 2002 ($1.596bn, +25.4%), jumping from No.5 position in 2001 to No.3. This pushed both KLA Tencor ($1.209bn, -35.9%) and Nikon ($0.801bn, -47.5%) down one spot to fourth and fifth, respectively.
One suspects that this "growth" is due more to integration of ASML's Silicon Valley Group (SVG) acquisition in 2001 than to improved business in the year.
The No.1 company, Applied Materials, was down 25.3% at $3.672bn. Japan's Tokyo Electon (TEL) was down 36.7% with $1.671bn in revenues at No.2.
All of the regions experienced significant declines in 2002. Europe was the hardest hit region, declining 46% from 2001. Japan suffered the most in the Asia/Pacific region as equipment sales declined nearly 45%. Taiwan suffered the least with only a 10% decline because of a Q2 buying spree, coupled with limited capacity at 130nm during the year. The rest of Asia/Pacific benefited from activity in China and declined by only 12.8%. The Americas performed a little better than the overall market, declining 29%.
"Hopefully, tight capacity at 180nm and below, coupled with the under investment in 2002 will provide the foundation for a more positive 2003," says Freeman.
Gartner market share results were based on using revenue calculated on the basis of the SAB 101 accounting policy mandated by the US Securities and Exchange Commission.
