E2236 - September 7, 2022

Semicap, that's a wrap. $ASML $AMAT

Sep 07, 2022

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SemiCap

This week we wrapped up our discussion of the Semiconductor Capital Equipment companies. Specifically we discussed ASML and AMAT.

ASML

ASML produces lithography systems for the production of semiconductors. A lithography system is essentially a projection system. Light is projected through a blueprint of the pattern that will be printed (known as a ‘mask’ or ‘reticle’). With the pattern encoded in the light, the system’s optics shrink and focus the pattern onto a photosensitive silicon wafer. After the pattern is printed, the system moves the wafer slightly and makes another copy on the wafer.

AMAT

Applied Materials provides capital equipment for almost every other step of the semiconductor manufacturing process, except lithography.

Specifically, their products include etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. They also produce products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), equipment upgrades and other display technologies for TVs, monitors, laptops, personal computers, smart phones, and other consumer-oriented devices and products for manufacturing photovoltaic cells and modules.

END USE APPLICATION of Semiconductor Equipment

REVENUES BY REGION

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1 SuperCompounders

2 Macro

3 Energy

3.1 Oil & Gas

3.2 Metals Powered

4 Tech

Cloud Multiples - Check out the most recent edition of Clouded Judgement for the latest SaaS multiples.
Semiconductors
- Wafer Fab Equipment Spending among largest SemiCaps1
- Semiconductor Industry Association Global Billings Report
- Bureau of Economic Analysis Semiconductor Import / Export

Cryptocurrency

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ASML 0.00%↑ AMAT 0.00%↑ LRCX 0.00%↑

Note that this includes non-equipment revenue (i.e. services, consumables, etc) so the % share is definitely overstated.