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Important Factors to Consider When Buying/Selling Second-source

FAQs on the SME secondary market

Chip shortages are impacting the global semiconductor market, and not just at the cutting edge. Demand for older technologies, fueled by applications related to mobility, sensing, and the internet of things will continue to outpace supply in 2021. With 200mm process equipment difficult to find, and even more difficult to procure quickly to ramp up capacity, manufacturers are turning to the secondary market to scale production using second source equipment.

However, in order to buy second-source semiconductor equipment, buyers have many questions. Here are the most important questions addressed:

Does the company do due diligence to meet compliance standards?
Right now it is highly relevant to comply with all of the regulations in equipment transactions. Since trade regulations are still a moving target, it is important to have a trusted partner that will put in the extra work to make any transaction fully compliant.

What is the crating and shipping process when purchasing?
The logistics to crate and ship the tool should also be considered. There is a lot of variability on this front depending on where the tool is shipping from and what local freight forwarders are available. It is always best to hire an expert to help with this process

Is the equipment currently installed or idle?
Finally, it is also important to understand if the equipment is installed or idle. Most times buyers prefer to have the equipment currently in process to know it works. However, there is a tradeoff in cost in order to deinstall the tool.

It is also beneficial for fabs to liquidate idle or outdated equipment. If there are processes that are no longer useful for production, it would be efficient to recoup the initial investment in order to upgrade a process. Selling equipment can be easier when the essential things are accounted for. Here are the important factors sellers ask about:

How will the tool be deinstalled after it is sold?
As a seller you want to make sure that the deinstallation and crating of the tool doesn’t exceed the amount that you can gain from the transaction. Most times these steps can be handled by a third party, which makes it easy if the numbers line up.

Who handles the shipping to the buyer, and how much does it cost?
The logistics to ship to the buyer also factors into the cost. The buyer needs to be within a reasonable distance in order for the shipping to not diminish the price of the tool. However, most times the buyer will take on the shipping cost.

How do payments work, and how secure is it?
Finally the payment speed and security of the transaction is of utmost importance. Not all companies value its sellers the same way, and withhold payment.

Finding a trusted partner to handle these factors is crucial to having a successful procurement or selling experience. Moov aims to be the industry leader in both areas. We prioritize the customer first, in order to deliver the tools and payment efficiently and safely. There are a lot of aspects that could make the equipment transaction process daunting, however, Moov simplifies the process by optimizing the customer experience.