Direct Answer
8 SEC filers are classified under the Standard Industrial Classification code that describes the etch equipment industry, and their latest annual reports show $24.3 billion of combined revenue and a median operating margin of 4.7%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Etch equipment makers sell the machines that remove material to carve circuit patterns during chip manufacturing. Demand rises with the number of etch steps in advanced logic and 3D memory, and a few companies dominate. The first numbers to compare across companies here are orders and backlog, market share in etch and gross margin.
Key Industry Metrics
- Orders and backlog: Machine orders and those not yet delivered. Orders lead revenue and follow chipmaker capital plans, giving a few quarters of visibility in a cyclical business.
- Market share in etch: The portion of etch tool sales held versus rivals. In a market with few suppliers, small share changes matter, and share gains usually follow wins on new process nodes.
- Gross margin: Revenue left after building tools. Technology leadership and service revenue support it, while competition and lower volumes in downturns reduce it.
- Service and spares share: Parts, upgrades and maintenance on installed tools. It is steadier than new equipment orders and grows with installed base, which cushions downturns.
- Customer concentration: The portion of sales from a few chipmakers. Only a handful of firms buy at scale, so one customer's spending plan has a large effect on results.
Primary Macro Drivers
- Chipmaker capex: Chipmakers' budgets for new tools determine etch orders and backlog, following fab build plans.
- 3D NAND and advanced logic complexity: Layered memory and complex logic need more etch steps per wafer, so tool demand rises faster than wafer starts.
- Export policy: Rules limiting sales to certain countries change addressable demand and the regional mix of orders.
- Fab construction: New fabs require full tool sets, so construction timing creates bursts of orders and later service revenue.
Major Risks
- Cyclical capex: Chipmakers cut tool purchases fast in downturns, causing sharp swings in orders; watch orders, backlog and customer capex guidance.
- Export restrictions: New limits on selling to some customers can remove orders or service revenue; watch regional revenue and disclosed license requirements.
- Customer concentration: A few chipmakers buy most tools, so one pause moves results; watch revenue by customer and backlog.
- Technology shifts: New process methods could shift value toward other tool types, so share can move; watch market share in etch and research spending.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Low |
| Industry Maturity | Growth |
| Geographic Importance | Global |
Etch Equipment Filers in the SEC Record
8 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 3559. Their latest fiscal years end between 2025 and 2026, and together they reported $24.3 billion of revenue. Median revenue growth over the prior year was -2.3%. Median operating margin was 4.7% and median net margin 4.3%. Median total liabilities were 33% of total assets, and 4 of 8 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Lam Research Corp | $23.2 billion | 26.0% | 35.3% | 31.3% | FY 2026 |
| Cricut, Inc. | $709 million | -0.5% | 13.5% | 10.8% | FY 2025 |
| Energy Recovery, Inc. | $135 million | -6.9% | 17.7% | 17.0% | FY 2025 |
| Amtech Systems Inc | $79 million | -21.6% | -35.9% | -38.2% | FY 2025 |
| Velo3d, Inc. | $46 million | 12.1% | -119.5% | -155.2% | FY 2025 |
| Trio-Tech International | $36 million | -13.8% | 0.7% | -0.1% | FY 2025 |
| Cvd Equipment Corp | $26 million | -4.1% | -7.4% | -6.1% | FY 2025 |
| Sono Tek Corp | $21 million | 2.0% | 8.7% | 8.6% | FY 2026 |
Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Etch Equipment guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Etch Equipment industry?
Key performance indicators for the Etch Equipment industry include: Orders and backlog, Market share in etch, Gross margin, Service and spares share, Customer concentration. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Etch Equipment industry?
The Etch Equipment industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Etch Equipment industry?
The primary risks for Etch Equipment companies include: Cyclical capex, Export restrictions, Customer concentration, Technology shifts. Investors should assess each company's exposure to these factors and its track record of navigating them.