Maturation of the chip market has transitioned decisions associated with semiconductor manufacturing from being heavily technology influenced to being primarily cost driven. The vast majority of semi devices are sufficiently "scaled" to run at existing fabs and technology nodes without sufficient ROI to justify the capital expenditures required to erect an approximately $5-10 billion new fab at leading process geometries and wafer sizes.
As a result, the prevailing operating strategy for most IDMs, foundries and new device manufacturers is to utilize non-leading edge or mainstream fabs with incremental capital expenditures aimed at capacity expansion, maintenance sustainability and performance upgrades.
The non-leading edge market encompasses everything from traditional CMOS devices to such things as power management, analog, discretes, RF mobile communications devices, advanced substrate materials, LEDs, MEMS, sensors, 3-D stacked chips, photovoltaic and alternative memories.
These manufacturers far prefer to purchase refurbished equipment that is production ready for installation with ongoing support from a company that provides technology differentiation. Historically fabs have relied upon OEMs to provide a significant portion of their ongoing success, including manufacturing equipment, spare parts, process technology, support services and equipment upgrades.
Today, however, the economics of supporting mainstream fabs are a resource and cost challenge for many OEMs who have been forced to focus their efforts on leading edge technologies where over 80 percent of their revenue is generated. At the same time, approximately 85 percent of the 1,000+ fabs in use around the world fall into the non-leading edge category. This created a large hole in the supply chain which has been filled by a hundreds of third party companies encompassing a highly fragmented and complex network of equipment refurbishers, remarketing companies, brokers, support servicers, outsourced process services and the like.
According to SEMI and Semico, the market for refurbished equipment is estimated to be $3.4 billion in 2009 and $6.1 billion in 2010. In addition to the refurbished equipment opportunity, there is an estimated $10+ billion dollar spare parts, equipment upgrade and services market associated with supporting non-leading edge fabs.
Entrepix is a highly recognized player with a global presence in this market. The company's solutions are customizable to meet the financial, operational and technology requirements of each individual client. Entrepix is uniquely positioned to fill the void between the chip manufacturers and the OEMs, by providing a comprehensive portfolio of technology-based products and services to more than 650 customers in the semiconductor and related industries.