The top five fab equipment companies all recorded double digit growth in the first quarter of 2021.
Applied Materials recorded sales of US$5.582 billion for its fiscal first quarter (February to April), an increase of 41% year-on-year.
Net income for the quarter was US$1.33 billion, an increase of 76%. The company recorded an operating margin rate of 47.5%.
Applied Materials said the company expected growth in the long-term and estimated that it will record US$5.92 billion in sales in its fiscal second quarter.
Its process inspection and control business is expected to grow by 50% this year, the company said, while its advanced packaging business will grow to double that of 2019.
ASML recorded 4.3 billion euro in the first quarter, a jump of 79% year-on-year. Operating margin for the quarter was 1.3 billion euro, a 225% surge over the same time period. It recorded an operating margin rate of 53.9% in the quarter.
The growth comes from its supply of extreme ultraviolet (EUV) systems. It sold seven units in the first quarter, and is expected to ship a total of around 40 units this year. In the first quarter, South Korea accounted for 44% of its shipment followed by Taiwan’s 43%.
ASML provides its EUV systems to customers such as Samsung, SK Hynix and TSMC.
Lam Research recorded US$3.848 billion in sales in the first quarter, an increase of 53% year-on-year. The company marked US$1.2 billion in operating income.
Memory accounted for 62% of its sales for the quarter, with NAND flash accounting for 48% and DRAM 14%. Increased spending into 3D NAND in the 96 to 129 layers range helped sales of NAND equipment, the company said. China accounted for 32% of its sales during the quarter, followed by South Korea’s 31% and Taiwan’s 14%.
Tokyo Electron recorded 415.4 billion yen in sales during the quarter, an increase of 34.4% year-on-year. The Japanese firm said spending in memory was noticeably higher than logic and foundry areas.
Spending in 3D NAND sector for etching and deposition is increasing, the company said, and it expected its new equipment to ship more this year compared to 2020.
KLA-Tencor recorded US$1.837 billion in sales during the quarter, an increase of 12% year-on-year. The company also said it is seeing increased demand for fab equipment and expected sales of up to US$1.9 billion in the second quarter.
According to SEMI, fab equipment spending this year is expected to grow 15.5% year-on-year to be worth US$70 billion. In 2022, it is expected grow 12% to be worth US$80 billion, according to the organization.