Wafer fab equipment market projected to decline in 2025 due to capacity digestion

From Investing.com: 2024-12-05 12:57:12

Morgan Stanley predicts a 6% decline in the wafer fab equipment market in 2025 due to capacity digestion and uneven demand. Chinese semiconductor companies like CXMT and SMIC are expected to see a 32% revenue increase, outpacing Western suppliers who could face a 24% decline.

Major players like TSMC, Intel, and Samsung are expected to see a 2% decline in combined capital expenditure. Morgan Stanley is cautious about Intel and Samsung’s foundry ambitions, raising concerns about their long-term plans.

Morgan Stanley prefers Chinese localization plays, upgrading Naura and AMEC to “overweight” while downgrading Applied Materials to “underweight”. It maintains “equal-weight” ratings on ASML, KLA, and Lasertec, citing near-term visibility for TSMC but long-term uncertainties in the leading-edge logic segment.



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