AIXTRON’s main competitor in MOcvd applications is the process equipment division of veeco Instruments, Inc. (usA). AIXTRON also competes with a number of Asian manufacturers including Taiyo Nippon sanso (Japan), amongst others. As a consequence of the rising led end-market expectations and positive prospects for MOcvd equipment demand, there is speculation that equipment companies from adjacent industries try to develop their own MOcvd tools. One example is Applied Materials, Inc. (usA), which is currently in the develop - ment process for an in-house equipment solution for the production of leds.
based on market research by vlsI Research, Inc. (as of April 2008) and gartner dataquest (as of March 2009), it is estimated that the share of the MOcvd equipment market (estimated 2008 total market value: usd 486m) held by AIXTRON in 2008 was around 72 %. The company’s strongest competitor in terms of sales, veeco Instruments, Inc., had an estimated market share of approximately 19 % for the same period. AIXTRON continues to anticipate a market share position in excess of 60 % in the global MOcvd market for 2009.
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Market research company gartner dataquest has estimated in december 2009 that the MOcvd market will be valued at usd 683m by the end of 2010 (2009e: usd 464m).
for Organic semiconductor applications, AIXTRON competes with established manufacturers such as ulvac, Inc. (Japan), Tokki corporation (Japan), sumitomo (Japan), Applied Materials, Inc. (usA), doosan dNd co., ltd. (south Korea), sunic system (south Korea) and a number of other smaller companies. while these competitors use established vacuum thermal evaporation (“vTe”) technology and polymer technology to produce organic light emitting diodes (Oleds), AIXTRON offers to Oled manufacturers its own highly innovative organic vapor phase deposition (Ovpd®) and pvpd (polymer vapor phase deposition) large area deposition technologies. In AIXTRON’s opinion, due to a perceived superior process technology and the potential for reducing manu- facturing costs, these technologies have the potential to compete successfully with vTe and polymer technologies. AIXTRON is potentially well positioned as a key system supplier for next generation of Oleds and large area deposition applications that are anticipated to be used in innovative, self-luminous displays as well as future potential lighting, solar cell, and other electronic Oled applications.
As AIXTRON and customer applications are still in the market entry phase, Organic semiconductor market share information is neither available nor meaningful at this point in time.
for cvd, Avd® and Ald applications, AIXTRON competes with a variety of other equipment
companies, including Applied Materials, Inc. (usA), Tokyo electron, ltd. (Japan), AsM Inter
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national N.v. (Netherlands), veeco Instruments, Inc. (usA), Ips Technology (south Korea), Jusung engineering co., ltd. (south Korea), and hitachi Kokusai electric co., ltd (Japan). with the company’s currently available silicon semiconductor manufacturing technologies, AIXTRON is potentially well positioned to offer advanced films for sub 32 nm memory and sub 22 nm logic integrated circuits (Ics). These technologies enable extremely high precision in depositing very thin material layers and facilitate the consistent coating of complex three-dimensional microelectronic device structures. Moreover, they offer the semiconductor industry new material coating possibilities for the next generation of computer chips and devices, and, in AIXTRON’s opinion, present high development potential for the future.
based on the most recent market research by gartner dataquest (as of March 2009), it is estimated that in 2008 AIXTRON held a 6 % share in the developing Ald systems market (total 2008 market value: usd 200m), and an approximate 18 % share of the market for tungsten silicide cvd systems specifically sold to dRAM and NANd flash memory chip manufacturers (total 2008 market value: usd 32m). In line with other capital equipment companies serving the memory device market, AIXTRON has continued to experience low order intake and revenue levels with its memory customers in 2009.
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Key peRfORMANce INdIcATORs
The executive board has implemented numerous systems and procedures to manage, monitor, analyze, and document company risks and opportunities, including a Key performance Indicator (KpI) system addressing all business areas. In 2009, the areas “Market”, “finance” and “Techno logy development” were again the most prominent control areas AIXTRON’s executive board was focused on.
In the “Market” control area, using third party reports and direct customer dialog, AIXTRON pursues a market-led product development strategy through the careful examination of market trends and customer requirements. The strategic aim of said control area is to ensure the market availability of new and appropriate product generations in line with customer requirements and ahead of competition.
In the “finance” control area, the executive board uses a range of internal and external key performance indicators, most importantly: total sales revenue contribution margins, net result data and cash flow. The strategic objective of said control area is to ensure that increasingly profitable revenue growth is matched by appropriate and prudent cash flow development. In the “Technology development” control area, the executive board uses a range of internal and external key performance indicators to evaluate the progress and success of internal projects. The Management regularly reviews project progress against target timelines and objectives, including: total sales revenue and net result data comparisons to the original targets. The strategic aim of said control area is to ensure that ongoing projects retain the necessary level of techno- logical and commercial competitiveness throughout the life of the product.