Thanks Antiterror13 good reference Here is the pertinent paragraph
I have no doubt persistent investment in talent and capital investment eventually will paid off
This article is 2015 ancient time I will try to dig latest news
AMEC is one of several fab equipment suppliers in China. Basically, China consists of several relatively unknown players that compete in the following markets—SMEE (lithography); Kingsemi (resist equipment); AMEC and NMC (etch); ACM, Sevenstar and Kingsemi (surface conditioning); Sevenstar (thermal processing); CETC (ion implanters); NMC and Piotech (deposition); Tianjin Hwatsing (CMP); and Raintree (inspection).
Still, the question is clear. With backing from the government, will Chinese fab tool vendors succeed?
It’s difficult to predict the future, but the trends are clear. As before, multinational toolmakers will continue to dominate the landscape in China. The multinationals have strong technology and capital. And they are well established in the region. A few Chinese equipment makers may succeed, but most will flounder. Many simply don’t have the technology.
“Local companies are now developing and providing equipment for PVD, CVD, etch, implant, clean, and lithography, and they have achieved some acceptance in certain pockets of the market,” Lam’s Liu said. “Wafer fabrication equipment is complex, and is a sophisticated technology that requires extensive testing, refinement in development, and optimization for a mass production environment. So, experience is an important factor in this industry.”
In any case, there are two areas worth watching in the Chinese equipment market—etch and lithography for packaging.
In etch, China’s AMEC is making inroads in the market. It has a significant installed base in China and elsewhere, and the company’s dielectric etchers are being used for advanced logic, memory and packaging. “We’ve built our company from the outset to serve a global market, not just domestic customers,” AMEC’s Yin said.
AMEC is the exception to the rule among China’s fab tool vendors. Besides technology and a customer base, the company has several years of experience in the business.
Meanwhile, China’s IC-packaging market is another area to watch. “The China advanced packaging market continues to grow, and all indications are that this will continue through 2016,” said Rezwan Lateef, general manager and vice president of lithography products at Ultratech. “The growth is largely based on standard RDL and copper pillar applications, where the technology is well understood and Chinese manufacturers can offer very competitive pricing.”
Still, there are challenges in this arena. “The main challenge for a multinational equipment company will be to develop a technical support infrastructure to a regional industry that is still in its infancy and requires substantial hand holding,” Lateef said. Over time, though, China plans to inject more funds into its domestic
s, which is both good and bad news for multinational equipment makers. On one hand, China’s OSATs will buy more equipment. But on the other hand, the funding will also help propel rival Chinese equipment makers.
This, in turn, will intensify the competition among equipment vendors in select markets. For example, the lithography market for packaging applications consists of several competitors, including ASML, Canon, EV Group, Nikon, Suss, Rudolph, Ultratech and Ushio.
The multinationals also compete against Shanghai Micro Electronics Equipment (SMEE), China’s sole supplier of lithography tools. SMEE has made some inroads in the IC-packaging market. But SMEE is also a thorn in the side of the multinationals, as it basically competes on the basis of price, according to analysts.
For now, China’s domestic equipment vendors will continue to plod along. But over time, China may need to consider a new strategy—it may need to buy a multinational equipment company to obtain the technology. There are several takeover targets in the equipment industry. But even if it takes this path, it might be too late for China. To be sure, today’s equipment business is a tough and maturing market.
