Equipment Manufacturers

Actor Type: Manufacturer Breaks When: Capex busts Capital Intensity: High Cash Flow Stability: Cyclical Economic Nature: Capital goods Margin Driver: Tool monopoly Performs Best When: Node transitions Pricing Power: Moderate–strong Primary Function: Fab equipment Primary Risk Transfer Mechanism: Order contracts Primary Risks Held: Cyclicality; R&D risk Public / Private Mix: Mostly public Representative Firms: ASML; Applied Materials; Lam Research Residual Risk After Transfer: Moderate Revenue Model: Equipment + service Typical Margin Profile: Medium–high Value Chain Segment: Industrial support Who Ultimately Bears the Risk?: Shareholders