According to the research report issued by CSC, the global semiconductor industry is still riding a wave of prosperity, and it's advisable to keep a close eye on the trend of globalization. SEMI's latest forecast reveals that the semiconductor equipment market is set to maintain its upward trajectory over the next three years. It is anticipated that by 2026, global sales of semiconductor manufacturing equipment will soar to USD 165.9 billion, marking a record high with a year-on-year surge of 23.2%. This growth momentum is expected to persist until 2028, with total sales projected to reach USD 229.5 billion, heralding five consecutive years of expansion. Presently, semiconductor equipment components worldwide are witnessing a price surge across the entire supply chain. The pricing power within the semiconductor industry is shifting from chip end-users to equipment and component suppliers. Given that component companies are relatively smaller in scale and bear a high proportion of fixed costs, they can directly translate price hikes into profits. Simultaneously, the production line expansion cycle spans 12-18 months, leading to limited supply flexibility. Hence, it is crucial to acknowledge the demand for domestic substitution and understand the rationale behind price increases, which stem from prolonged lead times from overseas suppliers of valves, piping, ceramic parts, RF power supplies, and GAS BOXes.
