Applied Materials

Last updated
Applied Materials, Inc.
Company type Public
Industry Semiconductors
FoundedNovember 10, 1967;57 years ago (1967-11-10)
FounderMichael A. McNeilly
Headquarters Santa Clara, California, U.S.
Area served
Worldwide
Key people
RevenueIncrease2.svg US$27.18 billion (2024)
Increase2.svgUS$7.867 billion (2024)
Increase2.svgUS$7.177 billion (2024)
Total assets Increase2.svgUS$34.41 billion (2024)
Total equity Increase2.svgUS$19.00 billion (2024)
Number of employees
35,700 (2024)
Website appliedmaterials.com
Footnotes /references
Financials as of October 27,2024. [1]

Applied Materials, Inc. is an American corporation that supplies equipment, services and software for the manufacture of semiconductor (integrated circuit) chips for electronics, flat panel displays for computers, smartphones, televisions, and solar products. The company also supplies equipment to produce coatings for flexible electronics, packaging and other applications. The company is headquartered in Santa Clara, California, [2] and is the second largest supplier of semiconductor equipment in the world based on revenue behind Dutch company ASML. [3] [4]

Contents

History

Founded in 1967 by Michael A. McNeilly and others, Applied Materials went public in 1972. In subsequent years, the company diversified, until James C. Morgan became CEO in 1976 and returned the company's focus to its core business of semiconductor manufacturing equipment. [5] [6] By 1978, sales increased by 17%. [7]

In 1984, Applied Materials became the first U.S. semiconductor equipment manufacturer to open its own technology center in Japan [8] , and the first semiconductor equipment company to operate a service center in China. [9] In 1987, Applied introduced a chemical vapor deposition (CVD) machine called the Precision 5000, which differed from existing machines by incorporating diverse processes into a single machine that had multiple process chambers. [10]

In 1992, the corporation settled a lawsuit with three former employees for an estimated $600,000. The suit complained that the employees were driven out of the company after complaining about the courses Applied Scholastics had been hired to teach there. [11]

In 1993, the Applied Materials' Precision 5000 was inducted into the Smithsonian Institution's permanent collection of Information Age technology. [10]

In November 1996, Applied Materials acquired two Israeli companies for an aggregate amount of $285 million: Opal Technologies and Orbot Instruments for $175 million and $110 million in cash, respectively. Orbot produces systems for inspecting patterned silicon wafers for yield enhancement during the semiconductor manufacturing process, as well as systems for inspecting masks used during the patterning process. Opal develops and manufactures high-speed metrology systems used by semiconductor manufacturers to verify critical dimensions during the production of integrated circuits. [12]

In 2000, Etec Systems, Inc. was purchased. [13] On June 27, 2001, Applied Materials acquired Israeli company Oramir Semiconductor Equipment Ltd., a supplier of laser cleaning technologies for semiconductor wafers, in a purchase business combination for $21 million in cash. [14]

In January 2008, Applied Materials purchased Baccini, an Italian company and designer of tools used in manufacturing solar cells. [15]

In 2009, Applied Materials opened its Solar Technology Center, the world's largest commercial solar energy research and development facility, in Xi'an, China. [16]

Applied Materials acquired Semitool Inc. in December 2009, [17] and announced its acquisition of Varian Semiconductor in May 2011. [18] Applied Materials then announced a planned merger with Tokyo Electron on September 24, 2013. [19] If it had been approved by government regulators, the proposed combined company, to be called Eteris, [20] would have been the world's largest supplier of semiconductor processing equipment, with a total market value of $29 billion. [21] However, on April 27, 2015, Applied Materials announced that its merger with Tokyo Electron has been scrapped due to antitrust concerns and fears of dominating the semiconductor equipment industry. [22]

In 2015, Applied Materials left the solar wafer sawing and the solar ion implantation businesses. [23]

Applied Materials was named among FORTUNE World's Most Admired Companies in 2018. [24]

In 2019, Applied Materials announced its intention to buy semiconductor equipment manufacturer (and former Hitachi group member) Kokusai Electric Corporation from private equity firm KKR for $2.2 billion, but terminated the deal in March 2021 citing delays in getting approval from China's regulator. [25] [26] [27]

In November 2023, Applied Materials was reported to be under criminal investigation by the United States Department of Justice for routing equipment to Semiconductor Manufacturing International Corporation via South Korea in violation of US sanctions. [28]

Finances

For the fiscal year 2021, Applied Materials reported earnings of US$5.888 billion, with an annual revenue of US$23.063 billion, a 34% increase over the previous fiscal. Applied Materials market capitalization was valued at over US$36.6 billion in November 2018. [29]

YearRevenue
in mil. US$		Net income
in mil. US$
20056,9921,210
20069,1671,517
20079,7351,710
20088,129961
20095,014−305
20109,549938
201110,5171,926
20128,719109
20137,509256
20149,0721,072
20159,6591,377
201610,8251,721
201714,5373,434
201817,2533,313
201914,6082,706
202017,2023,619
202123,0635,888
202225,7856,525
202326,5176,856
202427,1767,177

Organization

Applied is organized into three major business sectors: Semiconductor Products, Applied Global Services, and Display and Adjacent Markets. [30] Applied Materials also operates a venture investing arm called Applied Ventures. [31]

Semiconductor Products

The company develops and manufactures equipment used in the wafer fabrication steps of creating a semiconductor device, including atomic layer deposition (ALD), chemical vapor deposition (CVD), physical vapor deposition (PVD), rapid thermal processing (RTP), chemical mechanical polishing (CMP), etch, ion implantation and wafer inspection. [32] The company acquired Semitool for this group in late 2009. [33] In 2019, Applied Materials agreed to buy semiconductor manufacturer Kokusai for $2.2 Billion. [34]

Applied Global Services

The Applied Global Services (AGS) group offers equipment installation support and warranty extended support, as well as maintenance support. AGS also offers new and refurbished equipment, as well as upgrades and enhancements for installed base equipment. This sector also includes automation software for manufacturing environments. [30]

Display and Adjacent Markets

AGS combined an existing business unit with the display business of Applied Films Corporation, acquired in mid-2006.

The manufacturing process for TFT LCDs (thin film transistor liquid crystal displays), commonly employed in computer monitors and televisions, is similar to that employed for integrated circuits. In cleanroom environments both TFT-LCD and integrated circuit production use photolithography, chemical and physical vapor deposition, and testing.[ citation needed ]

Energy and Environmental Solutions (former sector)

In 2006, the company acquired Applied Films, a glass coating and web coating business. Also in 2006, Applied announced it was entering the solar manufacturing equipment business. The solar, glass and web businesses were organized into the company's Energy and Environmental Solutions (EES) sector.

In 2007, Applied Materials announced the Applied SunFab thin film photovoltaic module production line, with single or tandem junction capability. SunFab applies silicon thin film layers to glass substrate that then produce electricity when exposed to sunlight. In 2009, the company's SunFab line was certified by the International Electrotechnical Commission (IEC). [35] In 2010, Applied announced that it was abandoning the thin film market and closing down their SunFab division. [36] Also in 2007, the company acquired privately held, Switzerland-based HCT Shaping Systems SA, a specialist in wafer sawing tools for both solar and semiconductor wafer manufacture, paying approximately $475 million. [37]

In 2008, Applied acquired privately held, Italy-based Baccini SpA for $330M, company that worked in the metallization steps of solar cell manufacturing. [38] The company was listed at the top of VLSI Research's list of supplier of photovoltaic manufacturing equipment for 2008, with sales of $797M. [39]

Since July 2016 the Energy and Environmental Solutions sector is no longer reported separately. Remaining solar business activities have been included in "Corporate and Others". [30]

Locations

Applied moved into its Bowers Avenue headquarters in Santa Clara, California, in 1974 [40] and operates in Europe, Japan, Canada, the United States, Israel, China, Italy, India, Korea, Southeast Asia, Singapore and Taiwan. [41]

Management

See also

Related Research Articles

<span class="mw-page-title-main">Semiconductor device fabrication</span> Manufacturing process used to create integrated circuits

Semiconductor device fabrication is the process used to manufacture semiconductor devices, typically integrated circuits (ICs) such as microprocessors, microcontrollers, and memories. It is a multiple-step photolithographic and physico-chemical process during which electronic circuits are gradually created on a wafer, typically made of pure single-crystal semiconducting material. Silicon is almost always used, but various compound semiconductors are used for specialized applications.

<span class="mw-page-title-main">Semiconductor device</span> Electronic component that exploits the electronic properties of semiconductor materials

A semiconductor device is an electronic component that relies on the electronic properties of a semiconductor material for its function. Its conductivity lies between conductors and insulators. Semiconductor devices have replaced vacuum tubes in most applications. They conduct electric current in the solid state, rather than as free electrons across a vacuum or as free electrons and ions through an ionized gas.

<span class="mw-page-title-main">Wafer (electronics)</span> Thin slice of semiconductor used for the fabrication of integrated circuits

In electronics, a wafer is a thin slice of semiconductor, such as a crystalline silicon, used for the fabrication of integrated circuits and, in photovoltaics, to manufacture solar cells.

<span class="mw-page-title-main">Hitachi</span> Japanese multinational engineering and electronics company

Hitachi, Ltd. is a Japanese multinational conglomerate founded in 1910 and headquartered in Chiyoda, Tokyo. The company is active in a range of industries, including digital systems, power and renewable energy, railway systems, healthcare products, and financial systems. The company was founded as an electrical machinery manufacturing subsidiary of the Kuhara Mining Plant in Hitachi, Ibaraki by engineer Namihei Odaira in 1910. It started as an independent company under its current name in 1920.

Wafer fabrication is a procedure composed of many repeated sequential processes to produce complete electrical or photonic circuits on semiconductor wafers in semiconductor device fabrication process. Examples include production of radio frequency (RF) amplifiers, LEDs, optical computer components, and microprocessors for computers. Wafer fabrication is used to build components with the necessary electrical structures.

KLA Corporation is an American capital equipment company based in Milpitas, California. It supplies process control and yield management systems for the semiconductor industry and other related nanoelectronics industries. The company's products and services are intended for all phases of wafer, reticle, integrated circuit (IC) and packaging production, from research and development to final volume manufacturing.

Maxim Integrated Products, Inc., was an American semiconductor company that designed, manufactured, and sold analog and mixed-signal integrated circuits for the automotive, industrial, communications, consumer, and computing markets. Maxim's product portfolio included power and battery management ICs, sensors, analog ICs, interface ICs, communications solutions, digital ICs, embedded security, and microcontrollers. The company is headquartered in San Jose, California, and has design centers, manufacturing facilities, and sales offices worldwide. In 2021, the company was acquired by Analog Devices.

<span class="mw-page-title-main">Semiconductor fabrication plant</span> Factory where integrated circuits are manufactured

In the microelectronics industry, a semiconductor fabrication plant, also called a fab or a foundry, is a factory where integrated circuits (ICs) are manufactured.

Soitec is an international company based in France, that manufactures substrates used in the creation of semiconductors.

<span class="mw-page-title-main">Lam Research</span> American semiconductor equipment company

Lam Research Corporation is an American supplier of wafer-fabrication equipment and related services to the semiconductor industry. Its products are used primarily in front-end wafer processing, which involves the steps that create the active components of semiconductor devices and their wiring (interconnects). The company also builds equipment for back-end wafer-level packaging (WLP) and for related manufacturing markets such as for microelectromechanical systems (MEMS).

ON Semiconductor Corporation is an American semiconductor supplier company, based in Scottsdale, Arizona. Products include power and signal management, logic, discrete, and custom devices for automotive, communications, computing, consumer, industrial, LED lighting, medical, military/aerospace and power applications. onsemi runs a network of manufacturing facilities, sales offices and design centers in North America, Europe, and the Asia Pacific regions. Based on its 2016 revenues of $3.907 billion, onsemi ranked among the worldwide top 20 semiconductor sales leaders, and was ranked No. 483 on the 2022 Fortune 500 based on its 2021 sales.

Semitool was a semiconductor manufacturing/capital equipment company based in Kalispell, Montana.

ASM is a Dutch headquartered multinational corporation that specializes in the design, manufacturing, sales and service of semiconductor wafer processing equipment for the fabrication of semiconductor devices. ASM's products are used by semiconductor manufacturers in front-end wafer processing in their semiconductor fabrication plants. ASM's technologies include atomic layer deposition, epitaxy, chemical vapor deposition and diffusion.

SunEdison, Inc. is a renewable energy company headquartered in the U.S. In addition to developing, building, owning, and operating solar power plants and wind energy plants, it also manufactures high-purity polysilicon, monocrystalline silicon ingots, silicon wafers, solar modules, solar energy systems, and solar module racking systems. Originally a silicon-wafer manufacturer established in 1959 as the Monsanto Electronic Materials Company, the company was sold by Monsanto in 1989.

<span class="mw-page-title-main">Vishay Intertechnology</span> American semiconductor manufacturer

Vishay Intertechnology, Inc. is an American manufacturer of discrete semiconductors and passive electronic components founded by Polish-born businessman Felix Zandman. Vishay has manufacturing plants in Israel, Asia, Europe, and the Americas where it produces rectifiers, diodes, MOSFETs, optoelectronics, selected integrated circuits, resistors, capacitors, and inductors. Vishay Intertechnology revenues for 2023 were $3.4 billion. At the end of 2023, Vishay had approximately 23,500 full-time employees.

<span class="mw-page-title-main">Veeco</span> American manufacturing company

Veeco Instruments Inc. is a global capital equipment supplier, headquartered in the U.S., that designs and builds processing systems used in semiconductor and compound semiconductor manufacturing, data storage and scientific markets for applications such as advanced packaging, photonics, power electronics and display technologies.

<span class="mw-page-title-main">Tokyo Electron</span> Japanese semiconductor equipment manufacturer

Tokyo Electron Limited, or TEL, is a Japanese electronics and semiconductor company headquartered in Akasaka, Minato-ku, Tokyo, Japan. The company was founded as Tokyo Electron Laboratories, Inc. in 1963. TEL is best known as a supplier of equipment to fabricate integrated circuits (IC), flat panel displays (FPD), and photovoltaic cells (PV). Tokyo Electron Device, or TED, is a subsidiary of TEL specializing in semiconductor devices, electronic components, and networking devices. As of 2011, TEL was the largest manufacturer of IC and FPD production equipment. Listed on the Nikkei 225, in 2024, Tokyo Electron had a market cap of US$114.6 billion, making it the third-most valuable company in Japan in terms of market cap, and the 12th ranked semiconductor-related company worldwide.

FSI International, Inc. (FSI) is an American manufacturing company based in Chaska, Minnesota, that supplies processing equipment used to manufacture microelectronics, including semiconductor devices.

<span class="mw-page-title-main">Kokusai Electric</span> Japanese semiconductor manufacturer equipment

Kokusai Electric is a Japanese semiconductor manufacturing company. Based in Chiyoda-ku, Tokyo, the company has been involved in the production of equipment for over seven decades.

References

  1. ↑ "U.S. SEC: Applied Materials, Inc. Form 10-K". U.S. Securities and Exchange Commission. 13 December 2024.
  2. ↑ "Applied Materials Inc" Archived 2017-04-07 at the Wayback Machine . Bloomberg L.P. Retrieved 3 March 2016.
  3. ↑ Team, Trefis. "Understanding Applied Materials' Business Model And Performance Across Segments". Forbes. Retrieved 2023-07-22.
  4. ↑ Allen, Gregory C. (November 26, 2024). "The True Impact of Allied Export Controls on the U.S. and Chinese Semiconductor Manufacturing Equipment Industries". Center for Strategic and International Studies.
  5. ↑ Turner, Tyya N. (14 June 2005). Vault Guide to the Top Manufacturing Employers. Vault. p. 30. ISBN   978-1581313246 . Retrieved 4 May 2016.
  6. ↑ McCaffery, Richard (17 December 1999). "TMF Interview With Applied Materials Chairman and Chief Executive James Morgan". The Motley Fool. Archived from the original on 11 August 2016. Retrieved 16 April 2016.
  7. ↑ Wheelwright, Steven C. (2010). Managing New Product and Process Development: Text Cases. Simon and Schuster. p. 428. ISBN   9781451602319 . Retrieved 4 May 2016.
  8. ↑ "U.S. chip firm constructs R&D center in Japan". ComputerWorld. 15 October 1984. Retrieved 16 April 2016.
  9. ↑ "Applied Materials expands presence in China". Solid State Technology. 18 October 2001. Archived from the original on 4 August 2016. Retrieved 16 April 2016.
  10. 1 2 Tsai, Terence; Cheng, Borshiuan (1 January 2006). The Silicon Dragon: High-tech Industry in Taiwan. Edward Elgar Publishing. p. 116. ISBN   1840642408 . Retrieved 16 April 2016.
  11. ↑ "Scientologizing". Forbes . September 14, 1992. p. 25.
  12. ↑ "Applied Materials Buys Orbot Instruments, Opal for $285 Mln; Opal chairman Meny Erad: "This is a great day for Israeli high-tech."". Globes. 26 November 1996. Archived from the original on 16 January 2013.
  13. ↑ "Applied Materials buys Etec - Jan. 12, 2000". money.cnn.com. Retrieved 2018-04-06.
  14. ↑ "Applied Materials, Inc. Inc August 2001 Quarterly Report, Form 10-Q, Filing Date August 24, 2001" (PDF). secdatabase.com. Retrieved Dec 26, 2012.
  15. ↑ Pimentel, Benjamin. "Applied Materials acquires Baccini of Italy". marketwatch.com.
  16. ↑ Lim, Louisa (16 December 2009). "The Green Rush Is On In China". NPR. Retrieved 4 May 2016.
  17. ↑ Bartash, Benjamin Pimentel, Jeffry. "Applied Materials to acquire Semitool for $364 million". MarketWatch. Retrieved 2018-04-06.{{cite news}}: CS1 maint: multiple names: authors list (link)
  18. ↑ Nicholson, Chris V. (4 May 2011). "Applied Materials to Buy Varian". The New York Times .
  19. ↑ Pfanner, Michael J. de la Merced and Eric (24 September 2013). "U.S. Manufacturer of Chip-Making Equipment Buys Japanese Rival". The New York Times .
  20. ↑ Clark, Don (8 July 2014). "Applied Materials and Tokyo Electron Pick 'Eteris' For Post-Merger Name". Wall Street Journal– via www.wsj.com.
  21. ↑ "Applied Materials to Acquire Tokyo Electron". Wall Street Journal. 25 September 2013.
  22. ↑ Soble, Jonathan (27 April 2015). "Applied Materials and Tokyo Electron Call Off $10 Billion Merger". The New York Times.
  23. ↑ "Applied Materials withdraws from solar ion implant and wafer sawing sectors". 19 August 2015.
  24. ↑ "The World's Most Admired Companies for 2018". Fortune. Retrieved 2018-07-26.
  25. ↑ "Exclusive: Applied Materials to buy KKR's Kokusai Electric for $2.2bn". Nikkei Asian Review.
  26. ↑ "Applied Materials to Buy Kokusai from KKR for $2.2 Billion". Bloomberg.com. 2020-01-10.
  27. ↑ Mehta, Chavi (29 March 2021). "Applied Materials terminates $2.2 billion deal for Japan's Kokusai Electric". Reuters .
  28. ↑ Freifeld, Karen (2023-11-17). "Applied Materials under US criminal probe for shipments to China's SMIC-sources". Reuters . Retrieved 2023-11-17.
  29. ↑ "Applied Materials Inc. - AnnualReports.com". www.annualreports.com. Retrieved 2018-12-03.
  30. 1 2 3 "Applied Materials Announces Record Results" (Press release). Applied Materials. 18 August 2016. Retrieved 19 October 2017.
  31. ↑ Spencer, Malia (20 February 2014). "Why Intel, Applied Materials are banking on a Corvallis startup". Portland Business Journal. Retrieved 4 May 2016.
  32. ↑ Shields, Anne (12 January 2015). "Overview of Applied Materials Silicon Systems segment". Market Realist. Retrieved 15 April 2016.
  33. ↑ Pimentel, Benjamin; Bartash, Jeffry (17 November 2009). "Applied Materials to acquire Semitool for $364 million". MarketWatch. Retrieved 15 April 2016.
  34. ↑ "Applied Materials to Buy Kokusai From KKR for $2.2 Billion". finance.yahoo.com. Retrieved 2019-07-01.
  35. ↑ ""AMAT's SunFab Modules Awarded IEC Certification." Renewable Energy World. January 16, 2009". 2009-01-16.
  36. ↑ Kanellos, Michael (21 July 2010). "Applied Materials Kills its SunFab Solar Business". Greenech Media. Retrieved 3 March 2016.
  37. ↑ ""Applied Materials Acquires Solar Wafer Manufacturer." Renewable Energy World. June 27, 2007". 2007-06-27.
  38. ↑ ""Applied Materials to Accelerate Its Solar Roadmap with Acquisition of Baccini." Renewable Energy World. November 26, 2007". 2007-11-26.
  39. ↑ "Applied tops VLSI's Top 10 PV manufacturing equipment suppliers for 2008 - Photovoltaics International". Archived from the original on 2009-07-14. Retrieved 2009-07-14.
  40. ↑ "1967-1979: The Early Years - Applied Materials". www.appliedmaterials.com. Archived from the original on 2020-01-20. Retrieved 2016-03-03.
  41. ↑ "10-K". www.sec.gov.
  42. ↑ "Applied Materials Names Thomas Iannotti as Chairman of the Board of Directors". Printed Electronics Now. 10 March 2017. Retrieved 19 October 2017.
  43. ↑ "Leadership | Applied Materials". Archived from the original on 2011-03-24. Retrieved 2011-03-26.
  44. ↑ "Applied Materials taps former Xilinx executive Brice Hill as CFO". Market Watch. March 7, 2022. Retrieved March 7, 2022.
  45. ↑ "Press Releases - Applied Materials". www.appliedmaterials.com. Archived from the original on 2012-01-18. Retrieved 2011-01-25.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.