VLSI Research Inc. has named the top suppliers of critical subsystems to the semiconductor and related manufacturing industries for 2016.

It was an eventful year for the industry as revenues grew 15.5% to an excess of $9.4 billion. There were also several acquisitions during the year, the most notable being Atlas Copco’s addition of Leybold Vacuum and CSK to its portfolio, and the acquisition of Newport by MKS. The other major event of 2016 was VAT Valve’s IPO at the beginning of an exceptionally strong year for the company, which saw it outgrow its peer group with sales climbing by 35%.

20170627_VLSIResearch_01 Figure 1: Top 10 suppliers of critical subsystems for 2016. (Source: VLSI Research)

The top 10 suppliers were the main winners in 2016, increasing their collective market share by 2% from 47% to 49%. Carl Zeiss SMT retained the top spot with sales just above $1 billion despite flat sales. Edwards, in second place, narrowed the gap dramatically with sales of $820 million and MKS Instruments outgrew the market by 34% to hold third position with sales of $720 million.

Advanced Energy put in a strong performance as the leading supplier of power subsystems, growing 25% to take fourth place from Brooks Automation, which slipped back into sixth. A surge in demand for vacuum process equipment helped VAT Valve jump from sixth to fifth place with 35% growth. HORIBA had a great year and asserted its strong performance in the fluid control subsystems market to retain seventh place. Ebara jumped up from tenth to eighth place, with Pfeiffer Vacuum ranked ninth and Hirata just managing to squeeze into the top ten ranking.

John West, Managing Director, VLSIresearch Europe commented: “2016 was a year of consecutive quarterly growth with sales beating all records. The outlook for the next four to eight quarters is for quarterly sales to continue at high levels driven by investments in semiconductor memory and OLED display technology. The already stretched supply chain will face serious challenges in delivering on time over this period.”