What They Say
DSCC pointed out in a blog post that in its latest report on display equipment sales, it is seeing falls of 18% YoY for Q3 2022, although the result was up 9% on Q2 2022.
Canon was #1 after three quarters of leadership from AMAT helped by an FMM VTE tool win and numerous litho tool wins. AMAT fell to #2 and ULVAC fell from #2 to #3, followed closely by TEL and AP Systems. Nikon dropped from #3 to #6 as G10.5 tool shipments slow, but did have wins at B12, EDO and Sharp. Canon took most of the share growth with only V Tech., SCREEN and Nissin also gaining share.
Slightly surprising (to me) was that display capex from 13 publicly traded companies rose 12% Q/Q and 26% Y/Y to $5.6 billion, the highest since Q3’20. China Star had the highest capex at $1.92 billion (t9) followed by LG Display at $1.4 billion (AP4/E6 and AP5/E7) and BOE at $856 million (B12). Adding in HKC, Sharp China and others, we see total capex at $7.6 billion, up 40% Q/Q and down 2% Y/Y. (There’s a chart on the blog)
The blog also looks at the ‘Display Capital Intensity Ratio’ which is increasing, and equipment supplier margins which are being maintained.
What We Think
It helps the equipment market that the target of most of the continued investment is in OLED manufacturing which is more capital intensive than LCD. As we have pointed out before, this suits the big firms like Samsung that would like to see the display industry as more like the semiconductor business, with bigger capital commitments and less like the ‘material sales’ business that LCD has often resembled in recent years. (BR)
Display Equipment Revenues for 19 Leading Suppliers
