Applied Materials
| File:Applied Materials Inc. Logo.svg | |
| Company type | Public |
|---|---|
| |
| Industry | Semiconductors |
| Founded | November 10, 1967 |
| Founder | Michael A. McNeilly |
| Headquarters | Santa Clara, California, U.S. |
Area served | Worldwide |
Key people |
|
| Revenue | Increase Template:US$ (2024) |
| Increase Template:US$ (2024) | |
| Increase Template:US$ (2024) | |
| Total assets | Increase Template:US$ (2024) |
| Total equity | Increase Template:US$ (2024) |
Number of employees | 35,700 (2024) |
| Website | appliedmaterials.com |
Applied Materials, Inc. is a U.S.-based enterprise providing equipment, software, and services essential for producing semiconductor chips, flat panel displays, and solar energy products. Its portfolio also includes solutions for flexible electronics coatings and packaging applications. Headquartered in Santa Clara, California, it stands as the second-largest semiconductor equipment manufacturer worldwide by revenue, trailing only the Dutch corporation ASML Holding.
History
Established in 1967 by Michael A. McNeilly, Applied Materials became publicly traded on NASDAQ in 1972. With James C. Morgan appointed CEO in 1976, the company concentrated its efforts on semiconductor fabrication equipment, resulting in a 17% rise in sales by 1978.
The firm broadened its international footprint in 1984 by launching a technology center in Japan and subsequently inaugurating a service center in China—marking it as the first American semiconductor equipment provider to establish operations there. In 1987, it introduced the Precision 5000 chemical vapor deposition system, which combined multiple process chambers to improve production efficiency.
Growth through acquisitions played a significant role: in 1996, Applied Materials purchased Israeli companies Opal Technologies and Orbot Instruments for $285 million to strengthen its metrology and wafer inspection technologies; followed by the acquisition of Etec Systems in 2000 and Oramir Semiconductor Equipment Ltd., known for laser cleaning solutions, in 2001.
Further diversification occurred with the 2008 acquisition of Italy’s Baccini to enhance solar cell manufacturing equipment and the opening of the Solar Technology Center in Xi'an, China, in 2009—the largest commercial solar research facility globally.
The company’s expansion continued with Semitool Inc.’s acquisition in 2009 and Varian Semiconductor’s purchase in 2011. In 2013, Applied Materials announced a proposed $29 billion merger with Tokyo Electron aiming to become the world’s largest semiconductor equipment supplier; this plan was ultimately abandoned in 2015 due to regulatory antitrust issues.
By 2015, Applied Materials divested from solar wafer sawing and ion implantation businesses to concentrate more on its primary operations.
Acknowledged as one of FORTUNE's World's Most Admired Companies in 2018, it pursued further growth with a planned $2.2 billion acquisition of Kokusai Electric from KKR announced in 2019; however, this deal was called off in 2021 following regulatory delays.
In November 2023, Applied Materials became subject to a criminal probe by the U.S. Department of Justice concerning alleged breaches of sanctions involving shipments routed through South Korea destined for Semiconductor Manufacturing International Corporation (SMIC).
Financial Performance
In the fiscal year 2021, Applied Materials achieved a net income of US$5.888 billion, generated from total revenues amounting to US$23.063 billion, representing a 34% growth compared to the previous year. As of November 2018, the company’s market value surpassed US$36.6 billion.
| Year | Revenue (million US$) |
Net Income (million US$) |
|---|---|---|
| 2005 | 6,992 | 1,210 |
| 2006 | 9,167 | 1,517 |
| 2007 | 9,735 | 1,710 |
| 2008 | 8,129 | 961 |
| 2009 | 5,014 | −305 |
| 2010 | 9,549 | 938 |
| 2011 | 10,517 | 1,926 |
| 2012 | 8,719 | 109 |
| 2013 | 7,509 | 256 |
| 2014 | 9,072 | 1,072 |
| 2015 | 9,659 | 1,377 |
| 2016 | 10,825 | 1,721 |
| 2017 | 14,537 | 3,434 |
| 2018 | 17,253 | 3,313 |
| 2019 | 14,608 | 2,706 |
| 2020 | 17,202 | 3,619 |
| 2021 | 23,063 | 5,888 |
| 2022 | 25,785 | 6,525 |
| 2023 | 26,517 | 6,856 |
| 2024 | 27,176 | 7,177 |
Corporate Structure
Applied Materials is organized into three primary divisions: Semiconductor Products; Applied Global Services; and Display and Adjacent Markets. Additionally, it operates a venture capital subsidiary known as Applied Ventures to facilitate strategic investment initiatives.
Semiconductor Products
This division focuses on the design and production of equipment essential for wafer fabrication in semiconductor manufacturing. Core technologies encompass atomic layer deposition (ALD), chemical vapor deposition (CVD), physical vapor deposition (PVD), rapid thermal processing (RTP), chemical mechanical polishing (CMP), etching techniques, ion implantation processes, and wafer inspection systems. Growth in this segment was bolstered by acquisitions including Semitool in 2009 and the $2.2 billion purchase of semiconductor manufacturer Kokusai in 2019.
Applied Global Services
The Applied Global Services (AGS) division delivers installation services for equipment along with warranty extensions and ongoing maintenance support. It also offers both new and reconditioned machinery as well as upgrades and enhancements for existing installed equipment. This unit incorporates automation software solutions tailored to manufacturing operational needs.
Display and Adjacent Markets
This segment was formed by integrating an existing business unit with the display operations acquired through Applied Films Corporation in 2006. The manufacturing methodology for thin-film transistor liquid crystal displays (TFT LCDs), commonly used in monitors and televisions, shares similarities with integrated circuit fabrication processes such as photolithography, vapor deposition techniques, and cleanroom testing procedures.
Energy and Environmental Solutions (former division)
The 2006 acquisition of Applied Films expanded Applied Materials’ capabilities into glass coating and web coating technologies while also entering the solar equipment manufacturing sector. These activities were consolidated under the Energy and Environmental Solutions (EES) business unit.
In 2007, Applied introduced the SunFab thin-film photovoltaic module product line featuring single or tandem junction cells that applied silicon thin films onto glass substrates. Although SunFab received IEC certification in 2009, production ceased in 2010 as the company withdrew from the thin-film solar market.
Also during 2007, Applied acquired HCT Shaping Systems SA of Switzerland for approximately $475 million; this company specialized in wafer sawing tools used in both solar and semiconductor fabrication. In 2008, it further expanded by acquiring Italy’s Baccini SpA for $330 million—a firm focused on metallization processes for solar cells.
According to VLSI Research data from 2008, Applied Materials led photovoltaic manufacturing equipment suppliers with sales totaling $797 million. Since July 2016, the Energy and Environmental Solutions segment has been merged into the "Corporate and Others" category to reflect a strategic realignment away from solar-specific reporting.
Locations
Since 1974, Applied Materials has been headquartered on Bowers Avenue in Santa Clara, California. The company also operates internationally, with offices and facilities spanning Europe, Japan, Canada, the United States, Israel, China, Italy, India, Korea, Southeast Asia, Singapore, and Taiwan.
Management
- Chairman of the Board: Thomas J. Iannotti
- President and CEO: Gary E. Dickerson
- Chief Financial Officer: Brice Hill
- Chief Technology Officer: Omkaram Nalamasu
See also
External links
- Pages with broken file links
- 1967 establishments in California
- Companies based in Santa Clara, California
- Companies listed on the Nasdaq
- American companies established in 1967
- Computer companies established in 1967
- Computer companies of the United States
- Computer hardware companies
- Electronics companies established in 1967
- Solar energy companies of the United States
- Equipment semiconductor companies
- Semiconductor companies of the United States
- Superfund sites in California
- Technology companies based in the San Francisco Bay Area
- Thin-film cell manufacturers
- 1970s initial public offerings
- 5
- Companies of the United States by year of establishment