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Applied Materials, Inc.
Type Public (NASDAQ: AMAT)
Founded 1967
Headquarters Santa Clara, California
Key people James C. Morgan, Chairman
Michael R. Splinter, President, CEO, and Director
George S. Davis, CFO
Industry Semiconductor Equipment & Materials
Revenue $9.734 Billion USD (2007)
Operating income $2.371 Billion USD (2007)
Net income $1.710 Billion USD (2007)
Employees 14,550 (2008)
Website www.appliedmaterials.com

Applied Materials, Inc. (NASDAQAMAT, SEHK: 4336) is a leading capital equipment producer serving the semiconductor, TFT LCD Display, Glass, WEB and solar (crystalline and thin film) manufacturing industries.

The company is headquartered in Santa Clara, California in the Silicon Valley. Founded in 1967 by Michael A. McNeilly and others, Applied Materials went public in 1972.

In 1993, the Applied Materials' Precision 5000 was inducted into the Smithsonian Institution's permanent collection of Information Age technology.[1]

Applied Materials creates and commercializes nanomanufacturing technology used in the production of semiconductor (integrated circuit) chips for electronic gear, flat panel displays for computers and television, glass coatings for homes and buildings, web (flexible substrate) coatings for industry and photovoltaic solar cells and modules using both thin film and crystalline (aka wafer or bulk) photovoltaic technology.

Applied Materials is also participating in the lighting industry through the European OPAL 2008 (Organic Phosphorescent lights for Applications in the Lighting market 2008) Program with the aim to develop an production technology for organic light-emitting diodes.

Applied is organized into four major business sectors: Silicon Systems Group, Display, Energy and Environmental Solutions (EES) and Service.

Contents

[edit] Semiconductor (Silicon Systems Group)

The largest revenue sector is the Silicon sector. They have been the number one supplier of equipment to the chip making industry since the early 1990s. The company acquired Oramir Semiconductor Equipment, a manufacturer of cleaning equipment for semiconductor wafers, in 2001 for $21 million in cash [2]. The Company also has a joint venture, Sokudo, with SCREEN (aka Dai Nippon Screen). Sokudo manufactures semiconductor track products.

In Semiconductor (aka Integrated Circuit), the company manufactures systems that perform most of the primary steps in the chip fabrication process, including atomic layer deposition, chemical vapor deposition (CVD), physical vapor deposition (PVD), electrochemical plating (EP), etching, ion implantation, rapid thermal processing (RTP), chemical mechanical polishing (CMP), CDSEM metrology, wafer inspection, SEM Defect Review, and reticle inspection.

[edit] Service

The Service business, or Applied Global Services (AGS), covers a wide range of offerings.

Equipment Services
AGS offers extended warranty support to customers who have purchased Applied Materials equipment, as well as, maintenance support for installed based equipment. This support ranges from standard preventative maintenance activities and emergency support to service contracts which guarantee manufacturing productivity metrics. These services offerings are available for the semiconductor, display, lighting, coating, thin-film solar, and crystalline silicon solar industries.

Refurbished Equipment and System Enhancements
AGS offers refurbished, warrantied equipment that has been qualified by Applied Materials as well as enhancements to installed base equipment.

[edit] Display

In the Display business, Applied Materials is considered the number one producer of capital equipment by VLSI Research Inc. an industry market research firm. This number one position is a combination of an existing business unit combined with the display business of Applied Films, acquired in mid-2006.

[edit] Energy and Environmental Solutions

With the acquisition of Applied Films, Applied Materials entered the Glass coating and Web coating businesses as well and both businesses are leaders in their markets. Also in 2006, Applied announced it was entering the solar manufacturing equipment business. The Solar, Glass and Web businesses are now organized into the EES sector of the Company.

In 2007, Applied announced the Applied SunFabTM 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. The unique aspect of SunFab is the use of large glass substrates, measuring 5.7 m2 (61 sq ft. or larger than a king size bed). Moser Baer has signed a deal with Applied Materials and started a plant in NOIDA, India where Applied Engineers are setting up the fab. Moser Baer is also expected to start one more plant in Chennai, India.

Applied has also penetrated the crystalline silicon solar market. In 2008, Applied acquired privately-held, Italy-based Baccini SpA for $330M giving Applied significant market share in the metallization steps of solar cell manufacturing. In the previous year, Applied acquired privately-held, Switzerland-based HCT Shaping Systems SA, the largest specialist in wafer sawing tools for both solar and semiconductor wafer markets, paying approximately $475 million.

Applied was listed as the leading supplier of PV (photovoltaic) manufacturing equipment for 2008 according to VLSI Research with sales of $797M.

[edit] Applied Ventures

Applied Materials also operates a venture investing arm called Applied Ventures.

[edit] Facilities

The company has offices in 16 countries, United States, Japan, China, Singapore, Korea, Germany, Taiwan, France, Spain, Italy, Ireland, Israel, Netherlands, United Kingdom, Switzerland and India.

[edit] Management

[edit] Customers

[edit] Competitors

[edit] Certification

Applied’s SunFab line have very recently been certified by the International Electrotechnical Commission (IEC) .[3]

[edit] History

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. [4]

[edit] References

[edit] External links




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