William Blair initiated research coverage of Axcelis Technologies, Inc. (ACLS $162.36), a company that designs and develops ion implantation equipment for the global semiconductor manufacturing industry.

Analyst Jed Dorsheimer estimated that the company would grow revenue at a compound annual rate of 13% over the next three years (2023–2025), with total revenue growth for fiscal 2023 projected at 12.7%, to $1.04 billion.

“Based in Beverly, Massachusetts, Axcelis develops and manufactures ion implantation and other processing equipment used to fabricate semiconductor chips,” said Dorsheimer. “Over 97% of Axcelis’s calendar 2022 revenues were derived from the company’s ion implantation business, while the remaining sales were attributable to aftermarket sales for legacy processing systems. Through its Purion platform, Axcelis offers a complete line of high-energy, high-current, and medium-current implant tools across all application requirements. The company provides extensive aftermarket service and lifecycle support through its CS&I business. Over 80% of its systems shipments in 2022 served mature semiconductor device markets, with about 39% total systems shipment exposure to the power device market, driven largely by favorable trends in automotive electrification.

“In the niche of ion implantation equipment for SiC semiconductor manufacturing, Axcelis has a superior product offering and a leading 70%-80% market share over its closest competitor, Applied Materials,” added Dorsheimer. “We estimate the capital intensity of ion implant for SiC device manufacturing is roughly five times that of tradition silicon power semi fabs. The company’s Purion suite of three individual tools together cover a wide processing space, providing valuable optionality to customers compared to the capability of Applied’s single tool. Customer fabs typically include a bespoke mix of all three of Axcelis’s tools, optimized to their process and product line. As SiC devices continue to become more complex, device manufacturers will rely more heavily on the edges of the processing window that Axcelis’s tools provide. Our proprietary supply/demand forecast concludes that ion implant equipment demand will exceed 1,200 tools and $6 billion of capital expenditure by 2030. We believe Axcelis will maintain and potentially increase its market share in SiC ion implantation, capturing a larger portion of our $6 billion estimate.”

William Blair is the premier global boutique with expertise in investment banking, investment management, and private wealth management. We provide advisory services, strategies, and solutions to meet our clients’ evolving needs. As an independent and employee-owned firm, together with our strategic partners, we operate in more than 20 offices worldwide.* 

View our research coverage list

*Includes strategic partnerships with Allier Capital, BDA Partners, and Poalim Capital Markets.

William Blair or an affiliate does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. This report is not intended to provide personal investment advice. The opinions and recommendations herein do not take into account individual client circumstances, objectives, or needs and are not intended as recommendations of particular securities, financial instruments, or strategies to particular clients. The recipient of this report must make its own independent decisions regarding any securities or financial instruments mentioned herein.

William Blair or an affiliate is a market maker in the security of Axcelis Technologies, Inc.

William Blair or an affiliate expects to receive or intends to seek compensation for investment banking services from Axcelis Technologies, Inc. or an affiliate within the next three months.

Officers and employees of William Blair or its affiliates (other than research analysts) may have a financial interest in securities of Axcelis Technologies, Inc.

Please contact us at +1 800 621 0687 or view disclosures on our coverage list.

Additional information is available upon request.

Current Ratings Distribution (as of 6/04/23)

Coverage Universe
Outperform (Buy): 74%
Market Perform (Hold): 26%
Underperform (Sell): 1%

Inv. Banking Relationships*
Outperform (Buy): 8%
Market Perform (Hold): 3%
Underperform (Sell): 50%

* Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair has received compensation for investment banking services within the past 12 months.

The compensation of the research analyst is based on a variety of factors, including the quality and accuracy of research, client feedback, contributions to other firm departments, competitive factors, and firm profitability.


Stock ratings and valuation methodologies: William Blair & Company, L.L.C. uses a three-point system to rate stocks. Individual ratings reflect the expected performance of the stock relative to the broader market (generally the S&P 500, unless otherwise indicated) over the next 12 months. The assessment of expected performance is a function of near-, intermediate-, and long-term company fundamentals, industry outlook, confidence in earnings estimates, valuation (and our valuation methodology), and other factors. Outperform (O) – stock expected to outperform the broader market over the next 12 months; Market Perform (M) – stock expected to perform approximately in line with the broader market over the next 12 months; Underperform (U) – stock expected to underperform the broader market over the next 12 months; not rated (NR) – the stock is not currently rated. The valuation methodologies include (but are not limited to) price-to-earnings multiple (P/E), relative P/E (compared with the relevant market), P/E-to-growth-rate (PEG) ratio, market capitalization/revenue multiple, enterprise value/EBITDA ratio, discounted cash flow, and others. Stock ratings and valuation methodologies should not be used or relied upon as investment advice. Past performance is not necessarily a guide to future performance.

The ratings and valuation methodologies reflect the opinion of the individual analyst and are subject to change at any time.

Our salespeople, traders, and other professionals may provide oral or written market commentary, short-term trade ideas, or trading strategies—to our clients, prospective clients, and our trading desks—that are contrary to opinions expressed in this research report. Certain outstanding research reports may contain discussions or investment opinions relating to securities, financial instruments and/or issuers that are no longer current. Always refer to the most recent report on a company or issuer. Our asset management and trading desks may make investment decisions that are inconsistent with recommendations or views expressed in this report. We will from time to time have long or short positions in, act as principal in, and buy or sell the securities referred to in this report. Our research is disseminated primarily electronically, and in some instances in printed form. Research is simultaneously available to all clients. This research report is for our clients only. No part of this material may be copied or duplicated in any form by any means or redistributed without the prior written consent of William Blair & Company, L.L.C.

This is not in any sense an offer or solicitation for the purchase or sale of a security or financial instrument. The factual statements herein have been take from sources we believe to be reliable, but such statements are made without any representation as to accuracy or completeness or otherwise, except with respect to any disclosures relative to William Blair or its research analysts. Opinions expressed are our own unless otherwise stated and are subject to change without notice. Prices shown are approximate.

This material is distributed in the United Kingdom and the European Economic Area (EEA) by William Blair International, Ltd., authorized and regulated by the Financial Conduct Authority (FCA). William Blair International, Limited is a limited liability company registered in England and Wales with company number 03619027. This material is only directed and issued to persons regarded as Professional investors or equivalent in their home jurisdiction, or persons falling within articles 19 (5), 38, 47, and 49 of the Financial Services and Markets Act of 2000 (Financial Promotion) Order 2005 (all such persons being referred to as “relevant persons”). This document must not be acted on or relied on by persons who are not “relevant persons.”

“William Blair” and “R*Docs” are registered trademarks of William Blair & Company, L.L.C. Copyright 2023, William Blair & Company, L.L.C. All rights reserved.