The booming IoT is giving a boost to the used wafer equipment market.

KLA-Tencor, a manufacturer of wafer inspection equipment, stated that demand in the used equipment market has historically been relatively stable. However, 2014 saw particularly strong performance, driven mainly by demand for 8-inch and some 12-inch wafer equipment—equipment that is two generations behind current technology, with processes at or above 40 nanometers. The resurgence in the used equipment market has prompted several industry players to increasingly enter this segment. For example, EV Group sells bonding equipment originally used for older process nodes, and equipment giant Lam Research has recently begun offering repair services for 28-nanometer and older process equipment, as well as providing integrated solutions that combine new and refurbished equipment.

Wafer Inspection Equipment Manufacturer KLA (KLA-Tencor) It was noted that demand in the used equipment market has historically been relatively stable, however... 2014 Its performance this year has been particularly impressive, largely driven by... 8 Inch and part of it 12 The demand for inch-wafer equipment—meaning it’s two generations behind the current state of the art— 40 Process technology above nanometer.

The secondhand equipment market is heating up, prompting related businesses to gradually enter this sector—such as Yikang Technology. (EVGroup) The equipment manufacturer Colin R&D is selling bonding equipment used for older processes. (LamResearch) Recently also invested. 28 Repair of nanometer- and older-process equipment, and provision of systems that integrate both new and old equipment, along with application materials. (Applied Materials) We’ve also begun assessing the size of the secondhand market.

Vice President of R&D at Colin Wendell Isom Indicates that it goes beyond Moore's Law. (MorethanMoore) The implementation means that industry players are actively seeking alternative solutions to expand wafer fab capacity; therefore, 8 Inch and 12 Process equipment designed for the inch-scale process will also be used to develop technologies such as low power consumption required for IoT devices; therefore, equipment manufacturers can continue to produce new products using these older-generation processes.

Research and consulting firm SemicoResearch It is believed that, since new equipment is even more expensive than used equipment, fabs would have to bear higher costs if they wish to purchase new equipment—and 8 Wafer fabs have long been accustomed to inexpensive used equipment; aside from certain specialized tools like bonding machines, they’re often reluctant to spend big money on replacing old equipment with new.

Therefore, KLA’s strategy is to purchase used equipment, enhance its performance, and add service offerings. Given the limited space in early wafer fabs, if the speed of older equipment can be doubled, the number of machines required can be reduced, giving manufacturers more flexibility to acquire new equipment such as lithography machines and etching machines.

Applied Materials is also gradually starting to explore the business of refurbishing used equipment, driven by demand from consumer electronics and IoT applications. 8 Inch, 12 The wafer fabrication equipment market is still expected to remain robust for some time. In addition to Europe and North America, several newly built fabs on the Chinese mainland are also adopting earlier-generation process technologies.

One approach to refurbishing old equipment is simply to restore it to normal working condition. Since some equipment has become excessively worn and neglected over time, merely restoring it to a functional state can already boost production output. 20% The above is all. In addition, beyond increasing production output, advanced applications such as network connectivity and on-site upgrades can also be integrated into tools for inspection, measurement, pattern recognition, and more, further enhancing equipment performance.

Given the unpredictable nature of the market, purchasing new equipment in the past was like placing a high-stakes bet. By contrast, selling old equipment on the used market and acquiring newer models seems like a much safer alternative.

However, as process technology continues to advance, the supply of used equipment has begun to tighten due to steadily rising demand, causing the gap between purchasing used and new equipment to narrow. This, in turn, has introduced considerable uncertainty into the future development of the process equipment market.

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