After chalking up a lofty $4 billion in revenues in 2000, the suppliers of cleanroom equipment have seen their market nose dive more than 25 percent.  For an industry accustomed to double-digit growth, this has been a huge adjustment.  However, there is light at the end of the tunnel says the McIlvaine Company in its continually updated online report, Cleanrooms: World Markets.  Sales of Cleanroom hardware this year will rise to $3.8 billion from $3.4 billion in 2002.  In 2004 revenues will jump another $600 million to $4.4 billion.  By 2007 cleanroom hardware sales will be in excess of $6 billion.

One reason for the turnaround is a brighter outlook for the semiconductor industry. Cleanroom requirements are a function of product quantity not revenue.  Semiconductor revenues fluctuate even more than production quantity.  When the industry slows, both prices and unit shipments decline.  So the revenue fluctuations are considerably greater than produced units.  The fact that silicon wafer shipments are near their historic peak testifies to the rebound of the industry.

Over the next year it is anticipated that more than 10 new 300-mm Fabs will have started construction.  There is already tightening of 300-mm wafer supply.  With the new plants coming online, this pressure will increase.  The industry conversion to the larger wafers makes a huge impact on cleanroom capital equipment revenues.  Because of the requirements for higher cleanliness, each increase in 300-mm capacity results an investment in cleanroom equipment of more than $500/ft² of cleanroom space and more than $2,000 in cleanroom investment per additional wafer.

The fastest growing segment of the cleanroom industry is flat panel displays.  The growth of the flat panel cleanroom market is demonstrated by the recently announced Chi Me Optoelectronics first fifth-generation TFT-LCD fab.  When it goes into operation next year in Taiwan, it will utilize more than 380,000 ft² of cleanroom space.  This will be one of the world’s largest cleanrooms.

The pharmaceutical cleanroom market will continue to be the second largest sector behind semiconductors.  The disk drive segment will continue to hold third place.  Other segments in order of importance are flat panel displays, other electronics, medical devices, food, hospital, and aerospace.

The high level of flat panel display and semiconductor cleanroom investment in Taiwan raises it to the fourth spot among the world leaders.  The U.S. will remain the largest cleanroom market followed by Japan and South Korea.  Taiwan’s purchases of cleanrooms valued at $400 million in 2006 will be more than the next three largest purchasers combined.  (China, United Kingdom, and Germany)

The cleanroom consumables industry is comprised of many small companies.  However, consolidation is underway.  ITW acquired Texwipe to become the largest cleanroom wipes company.  Now DuPont Nonwovens has acquired the cleanroom apparel line of White Knight Engineered Products.  White Knight manufactures both disposable and reusable garments.  DuPont Tyvek is one of the most widely used materials in disposable garments.

For more information on Cleanrooms: World Markets click on:  http://www.mcilvainecompany.com/cleanroom.html or call Bob at 847-784-0012.

Bob McIlvaine

www.mcilvainecompany.com