SÜSS MicroTec SE: history, ownership, mission, how it works & makes money

A Brief History of SÜSS MicroTec SE

SÜSS MicroTec SE, founded in 1949, operates in the semiconductor and microelectronics industry, offering equipment and processes for the production of microchips. The company is headquartered in Garching bei München, Germany.

In 1998, SÜSS MicroTec was listed on the Frankfurt Stock Exchange, marking a significant milestone in its growth trajectory. The company expanded its portfolio through strategic acquisitions, including the purchase of the semiconductor segment of AIXTRON AG in 2009, which enhanced its market capabilities.

By 2013, SÜSS MicroTec reported sales of approximately €100 million and employed around 700 employees. The company focused on core technologies such as photolithography, plasma etching, and packaging solutions, establishing a robust position in the global semiconductor market.

In 2016, SÜSS MicroTec expanded its product offerings by integrating advanced technologies for 3D packaging solutions, which was crucial for the evolution of chip architecture, particularly in high-performance and mobile applications.

As of 2021, SÜSS MicroTec achieved total revenues of approximately €120 million, with a net income of around €8 million. The company recorded a year-on-year growth rate of approximately 15%, driven by increased demand in the automotive and consumer electronics sectors.

By 2022, SÜSS MicroTec continued to capitalize on the growth of the semiconductor industry, which was projected to reach $1 trillion by 2025. The company invested significantly in research and development, allocating approximately 10% of its annual revenue towards innovative technologies.

In its recent annual report, SÜSS MicroTec projected revenue growth of 10-15% for 2023, driven by the demand for advanced packaging technologies and the increasing adoption of electric vehicles, which require sophisticated semiconductor solutions.

Overall, SÜSS MicroTec SE's history is marked by consistent growth and adaptation to the evolving semiconductor landscape, making it a key player in the technology sector.

A Who Owns SÜSS MicroTec SE

SÜSS MicroTec SE, a prominent provider of equipment and solutions for the semiconductor industry, trades on the Frankfurt Stock Exchange under the ticker symbol "SMH." As of the latest available data in October 2023, the ownership structure of the company is comprised of a mix of institutional, private, and strategic investors.

The largest stakeholder among institutional investors is DWS Investment GmbH, holding approximately 6.9%. Other notable institutional shareholders include Allianz Global Investors, with a holding of 5.6%, and BlackRock, which owns around 4.4%.

On the private investment side, several high-net-worth individuals have acquired significant shares in the company. The management and board members possess a combined 12.5% ownership, which indicates a strong alignment of interests between the company's leadership and its shareholders.

Strategically, SÜSS MicroTec fosters partnerships with various industry players, reflecting a 26.5% ownership stake comprised of joint ventures and strategic alliances, enhancing its market presence and technological capabilities.

As of the end of Q3 2023, SÜSS MicroTec SE reported a market capitalization of approximately €350 million, underscoring the significance of its ownership structure in driving company growth and shareholder value.

The balance in ownership among institutional and private stakeholders allows for diverse perspectives and influences in corporate governance, facilitating a robust decision-making process that is vital for long-term sustainability.

SÜSS MicroTec SE Mission Statement

SÜSS MicroTec SE, headquartered in Garching near Munich, operates in the semiconductor and microelectronics industry, providing equipment and solutions for applications in MEMS, microelectronics, and nanotechnology. The company's mission emphasizes innovation, quality, and customer service, aiming to lead in developing advanced technologies that enhance production processes.

The mission statement focuses on three core pillars: customer satisfaction, technological advancement, and sustainable practices. It is dedicated to delivering cutting-edge solutions that meet the evolving needs of its global clientele while being committed to environmental responsibility and sustainability.

The company recorded a revenue of €182 million in 2022, reflecting a growth of 10% compared to the previous year. This growth is attributed to the rising demand for advanced semiconductor technologies amid global digital transformation trends.

SÜSS MicroTec's commitment to R&D is evident from its high expenditure, with approximately 10% of its total revenues reinvested in research and development to foster innovation. The company prides itself on holding over 150 patents, indicating a strong intellectual property portfolio essential for maintaining competitive advantage.

Moreover, the company places a significant emphasis on its corporate social responsibility (CSR) initiatives. In their latest report, they committed to achieving a 30% reduction in carbon emissions by 2025. This aligns with the broader industry movement towards sustainable manufacturing processes.

In 2022, SÜSS MicroTec achieved an EBIT margin of 15%, reflecting operational efficiency and effective cost management strategies. The company continues to focus on expanding its global footprint, with significant market penetration in Asia, particularly in China and Taiwan, where growth opportunities in semiconductor production are vast.

With a diverse product portfolio that includes systems for photolithography, mask aligners, and bonding systems, SÜSS MicroTec SE aims to support the advancement and miniaturization of electronic components, facilitating innovations across various sectors, including automotive, medical, and consumer electronics.

As of Q3 2023, the company's stock price was approximately €24.50, reflecting a year-to-date increase of 15%. Market analysts recognize the company as a pivotal player in the semiconductor equipment sector, forecasting continued growth as demand escalates globally.

How SÜSS MicroTec SE Works

SÜSS MicroTec SE, founded in 1949, operates in the semiconductor equipment industry. The company designs and develops equipment used in the manufacturing of microelectronic devices. Its products include photolithography systems, bumping and packaging equipment, and wafer processing systems. The company is headquartered in Munich, Germany, and serves clients worldwide.

The core business segments include:

• Photomask and Wafer Services
• Flip Chip Bumping
• Advanced Packaging
• Membrane Technology

For the fiscal year 2022, SÜSS MicroTec reported a revenue of €164.1 million, a growth of 12.2% compared to 2021. The operating profit (EBIT) reached €20.4 million, reflecting an EBIT margin of 12.4%.

The company’s product portfolio is essential for various applications, including smartphones, automotive electronics, and industrial applications. As of the end of 2022, SÜSS MicroTec held a market share of approximately 4% in the global photolithography equipment market.

In terms of geographical breakdown, SÜSS MicroTec’s sales in 2022 were distributed as follows:

The company’s commitment to R&D is reflected in its investment in innovation, which amounted to €11 million in 2022, constituting around 6.7% of total revenue. This has positioned SÜSS MicroTec to leverage cutting-edge technologies like 5G and AI, which drive demand for advanced semiconductor manufacturing processes.

Regarding stock performance, as of September 2023, SÜSS MicroTec SE shares traded at approximately €22.50, having increased by about 35% year-to-date. The company has a market capitalization of approximately €450 million.

In 2022, the net income stood at €15.6 million, delivering earnings per share (EPS) of €1.31. The net profit margin was reported at 9.5%, demonstrating robust profitability metrics.

Additionally, SÜSS MicroTec has been actively pursuing strategic partnerships and collaborations to enhance its product offerings and streamline operations. Recent agreements with leading semiconductor manufacturers signify the company’s positioning in the rapidly evolving tech landscape.

As of Q2 2023, the company's order backlog was reported at €140 million, indicating continued demand for its products and services. This strong pipeline ensures revenue visibility and supports growth prospects in the coming quarters.

How SÜSS MicroTec SE Makes Money

SÜSS MicroTec SE is a technology company specializing in equipment and solutions for the semiconductor industry. The company's revenue streams are primarily generated through the sale of photolithography equipment and assembly solutions. In the fiscal year 2022, SÜSS MicroTec reported €174.2 million in revenue, a significant increase from €144.5 million in 2021, marking a growth rate of approximately 20.6%.

The company operates across several core segments:

• Photolithography
• Mask/Etch
• Back-end processes
• Packaging equipment

Each segment is crucial for different phases of semiconductor manufacturing, contributing to the overall revenue of SÜSS MicroTec. The photolithography segment alone accounted for around 50% of total sales in 2022.

The company's operational efficiency is reflected in its gross margin, which was reported at 40% for the fiscal year 2022. This indicates a strong control over production costs, which is vital for maintaining profitability in a competitive market.

SÜSS MicroTec invests heavily in research and development, allocating approximately 10% of its total revenue to R&D activities. This strategic investment is crucial for the continuous innovation of their product lines and maintaining a competitive edge in the semiconductor equipment market.

Moreover, the company benefits from selling spare parts and providing service contracts, which adds a recurring revenue stream. In 2022, service contracts generated approximately €25 million, contributing to the overall sustainability of revenue.

Geographically, SÜSS MicroTec is well-positioned, with sales concentrated in key markets, including:

• Asia (specifically South Korea and China)
• North America
• Europe

The geographic distribution of revenue illustrates the importance of the Asian market, which accounted for roughly 65% of total sales in 2022.

Moving forward, the company anticipates continued growth driven by the increasing demand for advanced packaging technologies and continued investments in semiconductor manufacturing. The total market size for semiconductor equipment is projected to grow from $90 billion in 2021 to over $130 billion by 2026, providing robust opportunities for SÜSS MicroTec to capitalize on its innovative product offerings.