Semiconductor Manufacturing Finance and Sales Concepts

Flashcards covering core concepts related to financing and sales in the semiconductor manufacturing industry.

What is the purpose of Macquarie's operating lease?

Clients pay to use equipment without ownership while Macquarie retains the asset on its balance sheet.

What is the Sale-Leaseback structure?

Macquarie buys a client's equipment and leases it back to provide liquidity.

What does Residual Value refer to in leasing?

It is the estimated value of an asset at the end of its lease term, crucial for structuring deals.

What is the Internal Rate of Return (IRR)?

A metric used to evaluate the profitability of leases or asset-based financing deals.

Define Gross Margin in the context of equipment sales.

Revenue minus the costs of acquiring and refurbishing equipment.

What does Bookings refer to in financing?

Signed orders tracked by SAF to manage the timing of financing revenue recognition.

What is Net Present Value (NPV) used for in leasing?

It is used to estimate the current value of future lease payments.

What distinguishes Macquarie in the Secondary Equipment Market?

It is one of the few global finance institutions taking principal positions in this market.

What is Equipment-as-a-service?

A structure allowing CGM clients to pay usage-based fees for high-capital expenditure tools.

What role does ESG play in SAF's sales strategy?

Used tools sales are positioned as part of sustainability frameworks, often included in client ESG reporting.