[Click eStock] "Surplus Global, Expansion of China's Semiconductor Equipment Used Market"

Research Alom forecasted on the 14th that Surplus Global will benefit from the expansion of the used semiconductor equipment market in China due to the US-China trade dispute.

Surplus Global is the world's No. 1 semiconductor used equipment distribution company specializing in the purchase and sale of used semiconductor equipment. The estimated sales ratio by business division this year is 70.4% for front-end processes, 14.2% for back-end processes, and 15.4% for products/others.

Researcher Seunghwan Lee of Research Alom stated in a report on the same day, "On the 9th, US President Joe Biden imposed a complete control on US capital investment in China's advanced technology sector," adding, "An executive order was announced to regulate investments by US capital such as private equity and venture capital in three fields: advanced semiconductors, quantum computing, and artificial intelligence (AI) in China."

Researcher Lee analyzed, "As the US-China trade dispute intensifies again, transactions of used semiconductor equipment in the Chinese market will become active, benefiting the company, which is the global No. 1 in used semiconductor equipment transactions," and "Since export restrictions on semiconductor equipment from the US to China have been imposed, Chinese semiconductor fab companies can no longer receive semiconductor equipment supply."

He added, "In 2018, when the US banned the export of semiconductor lithography equipment from supplier ASML to China, Chinese companies had no choice but to purchase used equipment, which also expanded the used market at that time and benefited the company."

Furthermore, he said, "As the semiconductor industry continues to reduce production, semiconductor equipment companies are also cutting back, causing equipment delivery times to extend to two years or more," and "As this phenomenon continues, semiconductor manufacturers who previously did not even consider using used equipment have recently begun actively considering the use of immediately purchasable used equipment."

He concluded, "Since there is mainly a shortage of equipment for 8-inch wafer processes, the number of customers trying to modify used equipment for 12-inch wafer processes to be used for 8-inch processes is increasing, and this trend is positive for the company's sales expansion."