QUOTE AND NEWS
Reuters  36 min ago  Comment 
* Aixtron signals deal may still be possible (Rewrites throughout, adds analyst comment)
Reuters  4 hrs ago  Comment 
The sale of Aixtron to Chinese investors could go ahead under new terms if the German semiconductor equipment maker sells its Silicon Valley division to get around U.S. objections, analysts said Monday.
newratings.com  Dec 4  Comment 
HERZOGENRATH (dpa-AFX) - German semiconductor equipment maker Aixtron (AIXG) said that it will explore with its Chinese suitor after President of the United States blocked the acquisition of the U.S. business of Aixtron by Grand Chip Investment...
Reuters  Dec 3  Comment 
German semiconductor equipment maker Aixtron will explore with its Chinese suitor what can be salvaged of the planned takeover after a U.S. presidential order ruled the...
newratings.com  Dec 3  Comment 
AIXTRON SE: Tender Offer by Grand Chip Investment GmbH / Prohibition of Acquisition of U.S. Business of AIXTRON by the U.S. President AIXTRON SE / Key word(s): Mergers & Acquisitions/Offer 03.12.2016 14:18 Disclosure of an inside information...
newratings.com  Dec 3  Comment 
HERZOGENRATH (dpa-AFX) - President Barack Obama blocked the acquisition of the U.S. business of Aixtron by Grand Chip Investment GmbH (Grand Chip) and certain of its direct and indirect shareholders (together, the Purchasers), according to a...
SeekingAlpha  Dec 2  Comment 
Mondo Visione  Dec 2  Comment 
As chair of the Committee on Foreign Investment in the United States (CFIUS), the U.S. Department of the Treasury today issued the following statement about the President’s decision regarding the U.S. business of Aixtron SE: The President...
Reuters  Dec 2  Comment 
Aixtron will have to take action to balance income and costs, including potential job cuts, if U.S. President Barack Obama blocks its takeover by China's Fujian Grand Chip Investment Fund (FGC).




 

Aixtron Aktiengesellschaft (AIXG) is a provider of deposition equipment equipment to the semiconductor and compound-semiconductor industry. The company's technology solutions are used by a diverse range of customers worldwide to build advanced components for electronic and opto-electronic applications based on compound, silicon, or organic semiconductor materials.[1]

Business Growth

Aixtron's revenue growth shows an incredible 150% increase since 2009. Net income also increased tenfold.[2] A combination of recessionary results in 2009, tailwinds in the foreign exchange market, and organic growth has pushed Aixtron from a 300 billion euro company in 2009 to nearly an 800 billion euro company in 2010.[2]

Key Trends and Forces

Significant growth opportunity in the high-end lighting and notebook markets

AIXG's technology is well suited for the lighting market with the trend in motion away from the incandescent lightbulb to the LED lightbulb. Another area of LED application is the TV, PC and notebook display market. Notebooks is the most important of the three, since the incremental cost of using LEDs in notebooks is substantially lower than in TVs and high-end monitors. Most of the top notebook makers in the U.S. are optimistic about using LEDs in notebooks. Both HP and Dell already have LED-based models, and Apple has followed suit with its LED Cinema Display.

The market is characterized by commoditization

The semiconductor equipment market is nearing a level of commoditization that mirrors the semiconductor manufacturing market. For example, while the demand for LEDs is likely to increase, prices for LEDs, its manufacturing components, and sapphire are likely to weaken. LED prices have fallen in seven of the last eight quarters. Analyst reports indicate that prices for LEDs may plunge up to 90% over the next three years as competition in the industry intensifies and commoditization of the goods result.[3] This will greatly reduce AIXG's high net margins in the future.

Competition

Aixtron's main competitors are:

Various private companies exist that also compete with Aixtron. The industry is intense with competition and companies try to improve their products and streamline their processes to cut costs and lower prices.

References

  1. Reuters: Company Profile - AIXG
  2. 2.0 2.1 Wikinvest SEC Files: AIXG 2010 20-F, Item 3: Selected Financial Data
  3. Yahoo! Finance: LED Lighting Prices May Drop 90% As Competition Grows to Meet Demand 6/16/2011
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