--- title: "Semiconductor Test Equipment Industry" description: "16 SEC filers are classified under the Standard Industrial Classification codes that describe the semiconductor test equipment industry." canonical: https://www.getswoopr.com/stocks/industries/information-technology/semiconductor-test-equipment/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Semiconductor Test Equipment Industry ## Direct Answer 16 SEC filers are classified under the Standard Industrial Classification codes that describe the semiconductor test equipment industry, and their latest annual reports show $34.1 billion of combined revenue and a median operating margin of 2.3%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Semiconductor test equipment makers sell the testers, probe cards and handlers that check chips before and after packaging. Demand follows chip volumes and complexity, especially for AI and high-performance parts. The first numbers to compare across companies here are orders and backlog, revenue by end market and gross margin. ## Key Industry Metrics - **Orders and backlog**: New orders and those awaiting delivery. Orders lead revenue and follow chip volumes and complexity, so backlog shows demand ahead in a cyclical business. - **Revenue by end market**: Sales divided among computing, mobile, automotive and memory markets. It shows which chips drive testing demand, since AI and high-performance parts need more test time. - **Gross margin**: Revenue left after building testers and handlers. Complex testers and software earn more, while volume swings affect how fixed costs are absorbed. - **Test intensity**: The amount of testing required per chip. Complex parts need longer and more advanced tests, so rising intensity lifts equipment demand beyond unit volumes. - **Customer concentration**: The share of revenue from a few chipmakers and test houses. A handful of buyers account for most purchases, so one customer's pause can move results. ## Primary Macro Drivers - **Chip production volumes**: Every chip is tested before shipment, so more units produced raises total test time and tester orders. - **AI and high-performance computing complexity**: Large processors and memory stacks need longer and more complex testing, raising test intensity and orders per unit shipped. - **Outsourced test**: Packaging and assembly houses doing test for chipmakers buy testers and probe cards, shifting orders toward them. - **Capital spending**: Chipmakers' and test houses' equipment budgets drive orders and backlog, with testers bought as capacity is added. ## Major Risks - **Cyclical orders**: Equipment spending follows chip demand and capacity plans, so orders can drop sharply; watch orders, backlog and customers' capital guidance. - **Customer concentration**: A few chipmakers and test houses place most orders, so a delay moves revenue; watch top-customer share and backlog. - **Competition**: Rival test makers compete on price and performance for each platform, reducing win rates and margin; watch gross margin and share commentary. - **Technology transitions**: New chip architectures and interfaces can require new testers and favor rivals; watch research spending and revenue by end market. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Cyclical | | Capital Intensity | Medium | | Regulatory Intensity | Low | | Industry Maturity | Growth | | Geographic Importance | Global | ## Semiconductor Test Equipment Filers in the SEC Record 16 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 3825, 3559. Their latest fiscal years end between 2025 and 2026, and together they reported $34.1 billion of revenue. Median revenue growth over the prior year was -0.9%. Median operating margin was 2.3% and median net margin 0.8%. Median total liabilities were 35% of total assets, and 8 of 16 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Lam Research Corp](https://www.getswoopr.com/stocks/companies/lam-research/) | $23.2 billion | 26.0% | 35.3% | 31.3% | FY 2026 | | [Veralto Corp](https://www.getswoopr.com/stocks/companies/veralto/) | $5.5 billion | 6.0% | 23.2% | 17.1% | FY 2025 | | [Teradyne, Inc](https://www.getswoopr.com/stocks/companies/teradyne/) | $3.2 billion | 13.1% | 20.4% | 17.4% | FY 2025 | | [Cricut, Inc.](https://www.getswoopr.com/stocks/companies/cricut-inc/) | $709 million | -0.5% | 13.5% | 10.8% | FY 2025 | | [Allient Inc](https://www.getswoopr.com/stocks/companies/allient-inc/) | $554 million | 4.6% | 7.9% | 4.0% | FY 2025 | | [Transcat Inc](https://www.getswoopr.com/stocks/companies/transcat-inc/) | $332 million | 19.2% | 4.0% | 1.6% | FY 2026 | | [Energy Recovery, Inc.](https://www.getswoopr.com/stocks/companies/energy-recovery-inc/) | $135 million | -6.9% | 17.7% | 17.0% | FY 2025 | | [Intest Corp](https://www.getswoopr.com/stocks/companies/intest-corporation/) | $114 million | -12.9% | -3.3% | -2.2% | FY 2025 | The 8 largest of 16 by revenue. 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 Semiconductor Test 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. ### More in Information Technology - [Information Technology sector overview](https://www.getswoopr.com/stocks/industries/information-technology/) - [Semiconductors](https://www.getswoopr.com/stocks/industries/information-technology/semiconductors/) - [Semiconductor Packaging Equipment](https://www.getswoopr.com/stocks/industries/information-technology/semiconductor-packaging-equipment/) - [Semiconductors & Semiconductor Equipment](https://www.getswoopr.com/stocks/industries/information-technology/semiconductors-and-semiconductor-equipment/) - [Semiconductor Materials](https://www.getswoopr.com/stocks/industries/information-technology/semiconductor-materials/) - [Sensors](https://www.getswoopr.com/stocks/industries/information-technology/sensors/) - [Semiconductor Lithography](https://www.getswoopr.com/stocks/industries/information-technology/semiconductor-lithography/) - [Silicon Wafers](https://www.getswoopr.com/stocks/industries/information-technology/silicon-wafers/) - [Semiconductor IP](https://www.getswoopr.com/stocks/industries/information-technology/semiconductor-ip/) ### Put it to work - [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/) - [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/) - [Company research](https://www.getswoopr.com/stocks/companies/) - [All industries](https://www.getswoopr.com/stocks/industries/) ## Frequently Asked Questions What are the main KPIs for the Semiconductor Test Equipment industry? Key performance indicators for the Semiconductor Test Equipment industry include: Orders and backlog, Revenue by end market, Gross margin, Test intensity, 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 Semiconductor Test Equipment industry? The Semiconductor Test 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 Semiconductor Test Equipment industry? The primary risks for Semiconductor Test Equipment companies include: Cyclical orders, Customer concentration, Competition, Technology transitions. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).