Semiconductor Equipment Support Revenue Analyzed Amid Potential Slowdown
What happened
ASML Holding N.V. reported €3.3 billion in installed-base management sales during its September quarter. Lam Research Corporation reported $2.47 billion in customer-support-related revenue and other during its June quarter. An analysis noted that while these support sales can soften a slowdown in new equipment orders, they should not be treated as purely recurring subscription revenue.
From insidermonkey.com
Why it matters
The support revenue streams for equipment makers are crucial, but the reports caution that the mix includes service, spares, and upgrades, not just recurring subscriptions. If new system revenue falls 20% while support categories remain flat, ASML’s total sales could decline about 14.4%, and Lam Research’s could decline similarly.
From insidermonkey.com
Who's involved
- Lam ResearchCritical equipment supplier whose tools are deeply embedded in TSMC's chip manufacturing processes.
- TSMCSemiconductor foundry company that utilizes advanced equipment from Lam Research.
- Applied MaterialsDirect competitor to Lam Research in the advanced semiconductor equipment market.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Lam ResearchSpeculative
Lam Research might face a decline in revenue due to delayed customer investments.
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The entities involved
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TSMC
semiconductor foundry company headquartered in Taiwan
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Lam Research
American company
Related events
- ASML is providing essential EUV lithography machines required for advanced chip manufacturing processes.
- ASML announced a major expansion in Eindhoven while confirming strong chip demand from global clients including Samsung, Nvidia, and TSMC.
- Intel, TSMC, and Samsung are adopting ASML's High NA EUV technology for advanced chip and DRAM production.
- Demand from both TSMC and Intel is supporting the growth runway for ASML Holding N.V.