VAT Group

VAT Group occupies a keystone position in semiconductor manufacturing: vacuum valves controlling ultra-high vacuum environments where chips are made. Founded 1965 in Haag, Switzerland, the company generated CHF 942 million revenue in 2024 (31.2% EBITDA margin) supplying precision valves to chipmakers worldwide. With 70% market share (up from 68% in 2023) in semiconductor vacuum valves, VAT exemplifies how dominating a narrow but critical niche creates more value than broad diversification. The Valves segment contributed CHF 775 million (2024), with 81.6% from semiconductors, 18.4% from advanced industries (solar, industrial coating, display). This isn't a simple component—semiconductor fabs require vacuum pressures down to 10^-9 torr where conventional seals fail, and even microscopic leaks contaminate nanometer-scale chip features. VAT's gate valves, pendulum valves, and transfer valves must operate millions of cycles without degradation while maintaining vacuum integrity. Q4 2024 Valves sales jumped 31% year-over-year and 35% sequentially as customers prepared for technology transitions to advanced logic (3nm, 2nm) and high-bandwidth memory (HBM). Q1 2025 semiconductor sales surged 52% year-over-year to CHF 193 million, driven by massive capex from TSMC, Intel, Samsung for leading-edge fabs. Chinese WFE (wafer fabrication equipment) spending hit $41 billion in 2024 as Beijing pursues chip self-sufficiency, directly benefiting VAT. The company's 2025 guidance targets 20% sales growth, potentially reaching CHF 1.5 billion by 2027. VAT's profitability demonstrates a biological principle: keystone species—organisms whose impact vastly exceeds their biomass—control ecosystems through strategic positioning. VAT doesn't make chips, design tools, or operate fabs, yet chipmakers can't build without vacuum systems meeting angstrom-level precision. This bottleneck position, combined with high switching costs (fab qualification takes 18+ months), creates pricing power that persists across semiconductor cycles.