Perhaps comparing WFR to INTC was a bit of a stretch, but I was only trying to point out they are a big company in their field. Below are a few excerpts from the latest S&P analysis of the company.
<<CORPORATE OVERVIEW. MEMC Electronic Materials, Inc. (WFR) is a global leader in the manufacture of silicon wafers. The company designs, manufactures and provides wafers and intermediate products for use in the semiconductor, solar and related industries. WFR operates manufacturing facilities in every major semiconductor manufacturing region, including Europe, Japan, Malaysia, South Korea, Taiwan, and the U.S. Its customers include virtually all of the world's major semiconductor device manufacturers, such as the major memory, microprocessor, and applications specific integrated circuit (ASIC) manufacturers, as well as the world's largest foundries.
WFR's products include prime polish wafers, epitaxial wafers and test and monitor wafers. The company markets its products primarily through a global direct sales force, with about 61% of 2007 sales in the Asia- Pacific region, 24% in the U.S., and 15% in Europe. WFR has a network of customer service and support centers globally.
In 2007, Samsung and Yingli Green Energy each accounted for greater than 10% of total revenues. At year end 2007, WFR had 219 U.S. patents and 453 foreign patents. It also had 58 and 275 pending U.S. and foreign patent applications, respectively.
Industry consolidation over the past decade has resulted in only four suppliers with market share of greater than 10%.We believe WFR and the other large competitors have an advantage over smaller producers due to economies of scale and their greater ability to invest in R&D and advanced technological capabilities.
COMPETITIVE LANDSCAPE. WFR participates in a highly competitive and commodity-like market for silicon wafers. Competition is global and intense involving competitors with substantial financial, technical, engineering and manufacturing resources. Among the six largest global wafer manufacturers, Shin-Etsu Handotai, SUMCO and Siltronic are the biggest competitors. WFR has a granular polysilicon facility in Pasadena, TX, and a chunk polysilicon facility in Merano, Italy. WFR believes it has a competitive and cost advantage over peers, through its ability to manufacture the majority of its own polysilicon, the raw material used in the manufacture of silicon wafers.
Sub-Industry : Semiconductor Equipment Peer Group*: Semiconductor Materials
Peer Group Symbol Market Cap(M)
MMEC WFR 3,313
ATMI Inc ATMI 433
AXT Inc ATXI 38
EMCORE Corp EMKR 100
Entegris Inc ENTG 225
Hemlock and Wacker were never mentioned anywhere in the S&P analysis as competitors or in a peer group.
Don |
