Applied Materials

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Applied Materials, Inc.
FoundedNovember 10, 1967; 54 years ago (1967-11-10)
FounderMichael A. McNeilly
HeadquartersSanta Clara, California, U.S.
Area served
Key people
Gary E. Dickerson
(President & CEO)
Thomas J. Iannotti
RevenueIncrease US$17.202 Billion (Fiscal Year Ended October 25, 2020)[2]
Increase US$4.365 Billion (Fiscal Year Ended October 25, 2020)[2]
Increase US$3.619 Billion (Fiscal Year Ended October 25, 2020)[2]
Total assetsIncrease US$22.353 Billion (Fiscal Year Ended October 25, 2020)[2]
Total equityIncrease US$10.578 Billion (Fiscal Year Ended October 25, 2020)[2]
Number of employees
c. 24,000[3]

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. Integral to the growth of Silicon Valley, the company also supplies equipment to produce coatings for flexible electronics, packaging and other applications. The company is headquartered in Santa Clara, California.[4]


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 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 an Italian company Baccini, a 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' acquisition of Semitool Inc. was completed in December 2009.[17]

Applied Materials announced its acquisition of Varian Semiconductor in May 2011.[18]

Applied Materials announced its merger with Tokyo Electron on September 24, 2013.[19] If approved by government regulators, the combined company, to be called Eteris,[20] would be the world's largest supplier of semiconductor processing equipment, with a total market value of $29 billion.[21]

But 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]

Applied Materials is named among FORTUNE World's Most Admired Companies in 2018.[23]

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 in early 2021 that project was cancelled.[24][25][26][27]


For the fiscal year 2018, Applied Materials reported earnings of US$3.313 billion, with an annual revenue of US$17.253 billion, a 33.3% increase over the previous fiscal cycle. Applied Materials market capitalization was valued at over US$36.6 billion in November 2018.[28]

Year Revenue
in mil. US$
Net income
in mil. 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


Applied is organized into three major business sectors: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.[29] Applied Materials also operates a venture investing arm called Applied Ventures.[30]

Semiconductor Systems[edit]

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.[31] The company acquired Semitool for this group in late 2009.[32] In 2019, Applied Materials agreed to buy semiconductor manufacturer Kokusai for $2.2 Billion.[33]

Applied Global Services[edit]

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.[29]

Display and Adjacent Markets[edit]

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)[edit]

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 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).[34] In 2010, Applied announced that it was abandoning the thin film market and closing down their SunFab division.[35] 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.[36]

In 2008, Applied acquired privately held, Italy-based Baccini SpA for $330M, company that worked in the metallization steps of solar cell manufacturing.[37] The company was listed at the top of VLSI Research's list of supplier of photovoltaic manufacturing equipment for 2008, with sales of $797M.[38]

Since July 2016 this sector is no longer reported separately. Remaining solar business activities have been included in "Corporate and Others".[29]


Applied operates in many locations globally, including in Europe, Japan, North America (principally the United States), Israel, China, Italy, India, Korea, Southeast Asia and Taiwan.[39] Applied moved into its Bowers Avenue headquarters in Santa Clara, CA, in 1974.[40]


  • Chairman of the Board of Directors: Thomas J. Iannotti[1]
  • President and Chief Executive Officer: Gary E. Dickerson[41]
  • Chief Financial Officer: Dan Durn[42]
  • Chief Technology Officer: Omkaram Nalamasu[43]

See also[edit]


  1. ^ a b "Applied Materials Names Thomas Iannotti as Chairman of the Board of Directors". Printed Electronics Now. 10 March 2017. Retrieved 19 October 2017.
  2. ^ a b c d e "Applied Materials, Inc. 2020 Annual Report". 25 October 2020. Retrieved 19 September 2021.
  3. ^ "About". Applied Materials. Retrieved 2019-10-08.
  4. ^ "Applied Materials Inc". Bloomberg L.P. Retrieved 3 March 2016.
  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. ^ a b 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". Retrieved 2018-04-06.
  14. ^ "Applied Materials, Inc. Inc August 2001 Quarterly Report, Form 10-Q, Filing Date August 24, 2001" (PDF). Retrieved Dec 26, 2012.
  15. ^ Pimentel, Benjamin. "Applied Materials acquires Baccini of Italy".
  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.
  18. ^ Nicholson, Chris V. "Applied Materials to Buy Varian".
  19. ^ Pfanner, Michael J. de la Merced and Eric. "U.S. Manufacturer of Chip-Making Equipment Buys Japanese Rival".
  20. ^ Clark, Don (8 July 2014). "Applied Materials and Tokyo Electron Pick 'Eteris' For Post-Merger Name". Wall Street Journal – via
  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. ^ "The World's Most Admired Companies for 2018". Fortune. Retrieved 2018-07-26.
  24. ^ "Subscribe to read | Financial Times". Cite uses generic title (help)
  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". 2020-01-10.
  27. ^ "Applied Materials to Acquire Kokusai Electric | Applied Materials".
  28. ^ "Applied Materials Inc. -". Retrieved 2018-12-03.
  29. ^ a b c "Applied Materials Announces Record Results" (Press release). Applied Materials. 18 August 2016. Retrieved 19 October 2017.
  30. ^ Spencer, Malia (20 February 2014). "Why Intel, Applied Materials are banking on a Corvallis startup". Portland Business Journal. Retrieved 4 May 2016.
  31. ^ Shields, Anne (12 January 2015). "Overview of Applied Materials Silicon Systems segment". Market Realist. Retrieved 15 April 2016.
  32. ^ Pimentel, Benjamin; Bartash, Jeffry (17 November 2009). "Applied Materials to acquire Semitool for $364 million". MarketWatch. Retrieved 15 April 2016.
  33. ^ "Applied Materials to Buy Kokusai From KKR for $2.2 Billion". Retrieved 2019-07-01.
  34. ^ ""AMAT's SunFab Modules Awarded IEC Certification." Renewable Energy World. January 16, 2009". 2009-01-16.
  35. ^ Kanellos, Michael (21 July 2010). "Applied Materials Kills its SunFab Solar Business". Greenech Media. Retrieved 3 March 2016.
  36. ^ ""Applied Materials Acquires Solar Wafer Manufacturer." Renewable Energy World. June 27, 2007". 2007-06-27.
  37. ^ ""Applied Materials to Accelerate Its Solar Roadmap with Acquisition of Baccini." Renewable Energy World. November 26, 2007". 2007-11-26.
  38. ^ "Archived copy". Archived from the original on 2009-07-14. Retrieved 2009-07-14.CS1 maint: archived copy as title (link)
  39. ^ "10-K".
  40. ^ "1967-1979: The Early Years - Applied Materials". Archived from the original on 2020-01-20. Retrieved 2016-03-03.
  41. ^ "Archived copy". Archived from the original on 2011-03-24. Retrieved 2011-03-26.CS1 maint: archived copy as title (link)
  42. ^ Lombardo, Cara (24 July 2017). "NXP Semiconductors CFO Leaves for Applied Materials". The Wall Street Journal. Retrieved 19 October 2017.
  43. ^ "Press Releases - Applied Materials".

External links[edit]