In our last post – Used Fab Equipment – Forces Driving Market Growth – we laid out some of the underlying reasons why used semiconductor equipment, especially 200mm, are in such demand. In short, mobile hardware, connected automobiles and devices, and the Internet of Things (IoT) are spurring the need for micro sensors that are manufactured at quantity and at low cost.

With increasing demand comes the question, where will the tools come from to manufacture these low cost wafers? Currently there are three options available to engineers:

  1. The open, used equipment market
  2. Third-party vendors and brokers
  3. Original equipment manufacturers (OEMs)

Here’s what you need to know about each option to make the most of your equipment investment.

The Open, Used Equipment Market

Generally, the ones who benefit the most from this option are mechanically inclined, and can handle the inevitable repairs. Many are engineers with years of experience using these systems. They are comfortable taking the risk on an “as-is” system. In these cases, the purchase is based purely on price, which is typically the lowest initial purchase price available. As far as disadvantages, there is no guarantee of the tool’s functionality, or whether it will be suited to the customer’s application. “As-is” means there are no software updates, and in all likelihood, electronics hardware is outdated. The customer has to arrange pick-up logistics including installation, and assume additional costs including packaging, freight, and import/export logistics and fees.

Third-Party Vendors and Brokers

The best layman comparison here is that of purchasing a used car from a used car dealership. Third-party equipment vendors frequently contract with former field service engineers of the OEMs whose tools they sell. These engineers install the equipment, put it through diagnostics, and make sure it’s operational.

While there can be some configuration provided through third-party vendors, they often do so with parts from other similar equipment, meaning it may not live up to the original intended functionality it was built to perform and usually the longest current warranty will sit at 90 days.

Original Equipment Manufacturers (OEMs)

Many semiconductor OEMs sell used systems that are fully factory refurbished. Parts that wear out are replaced, and the latest compatible control electronics and software are added. Each piece of equipment is fully tested and must pass the same functional specifications it did when it originally shipped as new. Professional packaging, transportation, and installation ensure equipment functionality at the customer site, not just the manufacturing facility. The tool comes with a standard warranty similar to the warranty provided with new equipment. The systems are certified-used and eligible for service contracts, and are serviceable by the OEM’s field service engineers.

While we can’t speak for other OEMs, here at FormFactor we provide a trade-in/buy-back program offering our certified used test and measurement equipment – SourceOne™. SourceOne brings our quality and industry-leading performance to the secondary equipment market. It offers a diverse inventory of completely reconditioned probe stations built by us, such as the M150, Summit™, PA200, or S300, as well as accessories like eVue™ digital imaging system. Many models are available for immediate shipment. All SourceOne equipment goes through a complete factory refurbishment to our exacting standards. Parts are expertly reconditioned and, if applicable, the latest software is installed. SourceOne refurbished equipment offers proven performance, like-new condition and a factory warranty – all at considerable savings.

With market factors driving demand for fab equipment that can produce micro sensors quickly and efficiently, quality shouldn’t have to suffer. In fact, it can’t! Make smart investment decisions in semiconductor equipment. Check out our SourceOne program to learn more.