Price hikes flow ~100% to toolmaker gross profit. Their suppliers have no pricing power. A decade of data shows Ichor's …
SemiAnalysis Twitter · SemiAnalysis (@SemiAnalysis_) · 2026-07-29
SemiAnalysis presents a decade of gross margin data showing that semiconductor equipment suppliers like Ichor and Ultra Clean have no pricing power, while toolmakers capture virtually all price hike benefits, positioning SemiCap gross margins for new highs.
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Extraction
Topics: semiconductor-equipmentgross-marginspricing-powersemicap-suppliers
Claims
- Price hikes flow approximately 100% to toolmaker gross profit, not to their suppliers.
- Ichor's gross margin has been banded at 8-17% for a decade with no breakout even in the tight 2017 and 2021-22 markets.
- Ultra Clean's gross margin has ranged 11-21% for a decade with similar stagnation.
- Toolmakers reprice their customers annually while their own input costs remain flat.
- A 10% like-for-like price increase would put SemiCap gross margins 1-5 percentage points above historical peaks.
Key quotes
Price hikes flow ~100% to toolmaker gross profit. Their suppliers have no pricing power.
A 10% like-for-like increase would put SemiCap gross margins 1–5pts above historical peaks. Volume up, price up, margins to new highs.