The tech world is abuzz with news that Axcelis Technologies ACLS is making significant strides in the Chinese chip market. The company announced the shipment of multiple units of its Purion M SiC medium current implanter to top power device chipmakers in China in the first quarter.
The Purion M SiC medium current implanter is set to play a crucial role in the production of 150mm silicon carbide power devices used in automotive, industrial, energy, and high-power applications. Axcelis’ Purion M SiC Power Series promises to enhance yield, boost capacity, and overcome technical challenges unique to power devices through its adaptable architecture and high-temperature capability.
This move by Axcelis lays the groundwork for the forthcoming introduction of the Purion H200 SiC and Purion XE SiC, driving fab productivity, reducing ownership costs, and expanding the production of advanced silicon carbide power devices.
Axcelis Technologies Seizes Market Opportunity
The push into the silicon carbide power device market comes at a pivotal moment. Industry projections from Markets and Markets suggest that the silicon carbide market is on track to hit $17.2 billion by 2027, with a projected CAGR of 32.6% from 2024 to 2027. This surge is fueled by the rising adoption of electric vehicles and renewable energy sources.
The increasing shift towards electric vehicles serves as a major catalyst for the silicon carbide power device market, consequently driving the demand for Axcelis’ Purion products, especially the PurionH200 silicon carbide, Purion XE silicon carbide systems, and the Purion M silicon carbide tool.
Earlier in December, the company announced the shipment of Purion XE high energy and Purion H high current implanters to various fabs in Korea and China for DRAM memory device production, including follow-on consignments to existing clients in Korea.
Inevitably, Axcelis faces headwinds from volatile supply chain dynamics and a weak global macroeconomic environment. Rising expenses in research and development and infrastructure are expected to pose challenges despite the company’s overall positive trajectory.
With a current Zacks Rank #3 (Hold), Axcelis has seen its shares decline by 14% in the past year, contrasting with the sub-industry’s growth of 26.4%.
Growth Potential Beyond China
Despite these obstacles, Axcelis continues to show promise with its strategic plays in the tech sector. Investors eyeing the broader technology landscape might want to consider stocks like Synopsys SNPS, Woodward WWD, and Perion Network PERI. Synopsys and Perion Network hold a Zacks Rank #1 (Strong Buy), while Woodward boasts a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Synopsys’ 2024 EPS has been on an upward trajectory, reflecting robust potential in the technology domain. Over the past year, Synopsys’ stock has risen by an impressive 50.3%, underlining its growth momentum.
Furthermore, Woodward’s fiscal 2024 EPS has seen a 5.7% increase in the past 60 days. The company’s stock has rallied by 51.2% over the past year, indicating a favorable market outlook for those considering investment opportunities in the tech sector.
Perion Network also exhibits positive signs, with a 0.6% improvement in its fiscal 2024 EPS over the last 60 days. However, the company has seen a slight dip of 39.1% in its stock value over the past year.
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Exciting times lie ahead for Axcelis and the tech industry as a whole. With strategic moves and a focus on innovation, companies like Axcelis and its counterparts are poised to shape the future of technology and drive progress in key markets like China.
For further insights into the latest trends and investment recommendations, keep up to date with Zacks Investment Research for comprehensive analysis and expert opinions on the evolving tech landscape.
