Amtech Systems, Inc. (ASYS)

Company Website 2020 Financial Report Stock Analysis

23.1

Million Dollars

in 2020 revenue

Patents

Amtech has 8 patents for their products

13.9

Million Dollars

backlog as of the end of 2020

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The Path to Drawdown: LEDs

Light-emitting diodes (LEDs) were first invented in 1994 as a high-brightness, high-efficiency alternative to incandescent bulbs. LEDs work like solar panels in reverse, converting electrons to photons instead of the other way around. For the equivalent amount of light, LEDs consume 90% less energy than incandescent bulbs, and half as much as compact fluorescents. While other lighting technologies convert energy into heat (and most of it wasted), LEDs convert 80% of their energy use into light.

There are many environmental advantages to LED lighting. Its efficiency in turning energy into light, rather than heat, helps reduce electricity consumption and air-conditioning loads. For people without access to ample energy, LEDs can be powered with small solar cells, replacing expensive kerosene lamps and their noxious fumes and emissions. Where LEDs are used in streetlights, they can save up to 70% of energy and significantly reduce maintenance costs.

As Project Drawdown projects, if LED lighting becomes widely used in the residential and commercial lighting market, it can help avoid between 10.2 - 10.8 gigatons of CO2 emissions in residences, and between 5.9 - 6.7 gigatons in commercial buildings. To achieve this, the global market share of LEDs needs to grow rapidly:

<::marker> In 2018, LEDs comprised 3% of the total commercial lighting market and 2% of the residential lighting market
<::marker> By 2050, LEDs should account for 95% and 90% of the residential and commercial markets, respectively
<::marker> That’s 12.82% CAGR for residential LED, and 11.21% CAGR for commercial LED lighting between 2018 - 2050.

About

Amtech Systems, Inc. (stock ticker: ASYS) is a supplier of semiconductor equipment and consumables serving mobile, computing, industrial, automotive, telecom, medical, and other industries. Headquartered in Tempe, Arizona, they primarily sell their products in Asia, North America, and Europe.

ASYS's Role in Drawdown

Amtech Systems has two business segments: Semiconductors and silicon carbide & LEDs. The first segment manufactures semiconductors, which are then used in industrial, commercial and residential lighting.

The second segment provides solutions with applications in silicon wafers for semiconductor products, LED and power device applications, sapphire substrates for LED lighting and mobile devices, various glass and silica components for 3D image transmission, etc.

Their semiconductor and silicon carbide & LED segments accounted for 84% and 15.9% of Amtech’s total 2020 revenue, respectively.

ASYS: What We Like

We’ll update this section once Amtech makes sustainability information available.

What We Want to See Improve

Disclose Sustainability Metrics

As of now, Amtech provides no information related to sustainability or environmental impact of their operations. We want to see this change. Amtech should track and report key sustainability metrics like their direct and indirect GHG emissions, emissions avoided, and energy consumption by source in an annual sustainability report so that investors and stakeholders can transparently assess Amtech’s carbon and environmental footprint.

Set Emissions Reduction Targets

Once these metrics are tracked and disclosed, Amtech should set targets for reducing emissions. These targets should be clear, quantitative, and scientifically-driven so as to conform to the global goal of staying below 1.5°C of global warming.

Enhance Supplier Transparency

There’s very little transparency regarding Amtech’s suppliers. We would like them to disclose how many suppliers they work with, what regions they’re located, and eventually the amount of emissions these suppliers account for.

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Allocated	Company	Description
5.00%	Applied Materials (AMAT)	Applied Materials supplies equipment, services and software for LED manufacturing. LEDs help conserve energy and cut emissions
0.56%	Universal Display (OLED)	Universal Display makes organic LEDs, replacing fluorescent and incandescent lighting and improving building energy efficiency
0.47%	Acuity Brands (AYI)	Acuity makes LEDs, smart lighting and building technology solutions that can improve energy efficiency and emissions from buildings
0.40%	Power Integrations, Inc. (POWI)	POWI makes energy-efficiency products like AC-DC power converters and LED drivers. These solutions help buildings conserve energy and cut emissions
0.28%	Diodes Incorporated (DIOD)	Diodes makes a range of semiconductor products for LCD display, LED monitors and lighting. LED lighting is a key solution for cutting building emissions
0.07%	Veeco Instruments Inc. (VECO)	Veeco makes equipment and processing systems used in making high-tech LEDs. Energy-efficient LEDs help buildings cut energy use and emissions
0.05%	Magnachip Semiconductor Corp. (MX)	Magnachip Semiconductor derives its revenue in part from the promotion of LEDs and solar PVs, through the sale of LED products and products used with solar PVs. It creates no products specifically for the fossil fuel industry.
0.02%	Agrify Corporation (AGFY)	Agrify provides LED lighting and other products for high-yield indoor agriculture. Efficient LEDs are an energy-saving alternative to conventional lights
0.02%	Amtech Systems, Inc. (ASYS)	Amtech Systems makes semiconductor equipment for LED and power device applications. LED lighting helps buildings cut emissions
0.02%	AXT, Inc. (AXTI)	AXT sells semiconductor substrates used in LEDs, thermal imaging, and autonomous vehicles. It makes no products specifically for the fossil fuel industry, thus passing our revenue filter.
0.02%	Energy Focus (EFOI)	Energy Focus makes LEDs for the Navy, federal, state and local governments, and big organizations, helping them save energy and cut building emissions
0.02%	Highway Holdings Limited (HIHO)	HIHO makes electronic components, some of which are used in making LEDs. LEDs are energy-efficient lighting that can cut emissions from buildings
0.02%	SemiLEDs Corporation (LEDS)	SemiLEDs makes LED components for lighting and other applications. LEDs are an energy-efficient lighting alternative that can cut building emissions
0.02%	LSI Industries Inc. (LYTS)	LSI Industries makes LEDs for automotive, restaurant, retail and grocery store customers. Energy-efficient LEDs help buildings cut emissions
0.02%	Orion Energy Systems, Inc (OESX)	Orion offers LED lighting and custom-made energy management systems for big organizations - a solution that cuts energy use and emissions from buildings
0.02%	O2Micro International Limited (OIIM)	O2Micro International makes LED products and lighting. LEDs are an energy-efficient lighting alternative that can cut emissions

Amtech Systems, Inc. (ASYS)

The Path to Drawdown: LEDs

About

ASYS's Role in Drawdown

What We Want to See Improve

Related LED Lights Stocks in the Climate Index

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