The companies in this industry provide the basis for the manufacturing of semiconductors. The major areas of the production process include deposition, etch, ion implanting, planarization, process diagnostics, rapid thermal processing, and testing. Most of the companies in this industry specialize in providing the tools and materials for only one or two of these production steps. The production process is becoming increasingly complex and more steps are being added to the process as demand for smaller and faster chips (Moore's Law) continues to drive innovation. Semiconductor equipment and material companies are also vulnerable to the cyclicality of semiconductor industry, and more specifically, fluctuations in the capital expenditures of semiconductor manufacturers.