Direct Answer
8 SEC filers are classified under the Standard Industrial Classification code that describes the wafer fabrication 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
Wafer fabrication equipment makers sell the deposition, etch, lithography, cleaning and inspection tools used to build chips. Revenue follows capital spending of a handful of chipmakers and moves with memory and leading-edge investment. The first numbers to compare across companies here are orders and backlog, revenue by customer segment and gross margin.
Key Industry Metrics
- Orders and backlog: New orders and those awaiting delivery. Orders lead revenue and follow chipmakers' capital plans, so backlog shows visibility in a strongly cyclical business.
- Revenue by customer segment: Sales split between foundry, memory and other chipmakers. Memory and logic spend on different cycles, so the split shows which segment drives orders.
- Gross margin: Revenue left after building tools. Technology leadership and service mix support it, while price competition and low volumes in downturns reduce it.
- Service and spares revenue: Parts, upgrades and maintenance on installed tools. It is steadier than new tool orders and grows as the installed base expands, which cushions downturns.
- Regional mix: Sales by region. It shows exposure to subsidy-driven buildouts and to export controls, which can change which markets can buy certain tools.
Primary Macro Drivers
- Fab capital spending: Chipmakers' budgets for new tools set orders and backlog, following plant build plans and technology upgrades.
- AI and memory demand: AI chip and memory makers spend heavily on tools, so demand in those markets shapes revenue by customer segment.
- Node and 3D architecture transitions: Smaller nodes and layered memory require more advanced and more numerous process steps, raising tool demand per wafer and service revenue.
- Export policy and subsidies: Rules on selling to some countries and government support for plants change addressable demand and the regional mix of orders.
Major Risks
- Cyclical capex: Chipmakers cut tool purchases quickly in downturns, causing sharp swings in orders; watch orders, backlog and customers' capital spending guidance.
- Export restrictions: New limits on selling to certain customers can remove orders and service revenue; watch regional revenue mix and license disclosures.
- Customer concentration: A handful of chipmakers buy most tools, so one pause moves results; watch revenue by customer segment and backlog.
- Technology risk: New process methods can shift value toward other tool types; watch share commentary, service and spares revenue and research spending.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Medium |
| Industry Maturity | Growth |
| Geographic Importance | Global |
Wafer Fabrication 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 Wafer Fabrication 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 Wafer Fabrication Equipment industry?
Key performance indicators for the Wafer Fabrication Equipment industry include: Orders and backlog, Revenue by customer segment, Gross margin, Service and spares revenue, Regional mix. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Wafer Fabrication Equipment industry?
The Wafer Fabrication 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 Wafer Fabrication Equipment industry?
The primary risks for Wafer Fabrication Equipment companies include: Cyclical capex, Export restrictions, Customer concentration, Technology risk. Investors should assess each company's exposure to these factors and its track record of navigating them.