India, June 23 -- For more than three decades analyzing semiconductor equipment markets, I learned that market share losses often become self-reinforcing. A company that loses technological leadership at one process node frequently loses additional share at the next node as customers migrate toward best-of-breed solutions.

In lithography, deposition, etch, and process control, market share often reflects technology leadership, and once leadership is lost, it can be difficult to regain.

Applied Materials (AMAT) provides a useful example. During the past decade, ASML strengthened its dominance in lithography, KLA expanded its leadership in process control, Lam Research increased its position in conductor etch, and ASM International emerge...