Applied Materials, Inc. (NASDAQ: AMAT, SEHK: 4336) is a 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.[2]
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 a 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.
In 2009, Applied Materials opened its Solar Technology Center—the world’s largest commercial solar energy research and development facility in Xi’an, China.
Applied Materials, Inc. (Applied), incorporated in 1967, provides manufacturing equipment, services and software to the global semiconductor, flat panel display, solar photovoltaic (PV) and related industries. Applied’s customers include manufacturers of semiconductor wafers and chips, flat panel liquid crystal displays (LCDs), solar PV cells and modules, and other electronic devices. These customers may use what they manufacture in their own end products or sell the items to other companies for use in advanced electronic components. Applied is a semiconductor fabrication equipment supplier. It is also a supplier of LCD fabrication equipment to the flat panel display industry and is the supplier of solar PV manufacturing systems to the solar industry. Applied operates in four segments: Silicon Systems Group, Applied Global Services, Display, and Energy and Environmental Solutions.
On December 21, 2009, Applied acquired Semitool, Inc., a supplier of electrochemical plating and wafer surface preparation equipment used by semiconductor packaging and manufacturing companies globally. In November 2009, Applied acquired substantially all the assets, including the intellectual property, of Advent Solar, Inc. (Advent Solar), a developer of advanced technology for c-Si solar photovoltaic cells and modules (PVs).
Silicon Systems Group Segment
Applied’s Silicon Systems Group segment develops, manufactures and sells a wide range of manufacturing equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs). Most chips are built on a silicon wafer base and include a variety of circuit components, such as transistors and other devices, that are connected by multiple layers of wiring (interconnects). Applied offers systems that perform most of the primary processes used in chip fabrication including atomic layer deposition (ALD), chemical vapor deposition (CVD), physical vapor deposition (PVD), electrochemical deposition (ECD) etch, rapid thermal processing (RTP), chemical mechanical planarization (CMP), wet cleaning and wafer metrology and inspection, as well as systems that etch, measure and inspect circuit patterns on masks used in the photolithography process. Applied’s semiconductor manufacturing systems are used by integrated device manufacturers and foundries to build and package memory, logic and other types of chips.
Deposition is a fundamental step in fabricating a chip. During deposition, layers of dielectric (an insulator), barrier, or electrically conductive (typically metal) films are deposited or grown on a wafer. Applied provides equipment to perform four types of deposition: ALD, CVD, ECD and PVD. In addition, Applied’s RTP systems can be used to perform certain types of dielectric deposition. ALD is an advanced technology in which atoms are deposited one layer at a time to build chip structures. This technology enables customers to fabricate thin films of either conducting or insulating material with uniform coverage in sub-nanometer sized structures. Applied offers ALD chambers for depositing tungsten and high-k/metal gate films. During the fiscal year ended October 31, 2010 (fiscal 2010), the Company introduced its Applied Endura iLB PVD/ALD system, an advancement in ALD technology that enables customers to shrink the contact structures to increase signal speeds in 22 nanometer and beyond logic and memory devices.
CVD is used to deposit dielectric and metal films on a wafer. During the CVD process, gases that contain atoms of the material to be deposited react on the wafer surface, forming a thin film of solid material. Electrochemical deposition is a process by which metal atoms from a chemical fluid (an electrolyte) are deposited on the surface of an immersed object. Its main application in the semiconductor industry is to deposit copper in interconnect wiring structures. The Company offers two ECD systems: the Applied Raider ECD for electroplating advanced chip interconnect structures, and the Applied Raider S ECD for advanced through-silicon via (TSV) packaging applications. PVD is a physical process in which atoms of a gas, such as argon, are accelerated toward a metal target.
Etching is used many times throughout the integrated circuit manufacturing process to selectively remove material from the surface of a wafer. In fiscal 2010, the Company introduced its Applied Centura AdvantEdge Mesa silicon etch system for fabricating nano-scale circuit features with angstrom-level precision. RTP is a process in which a wafer is subjected to rapid bursts of intense heat that can take the wafer from room temperature to more than 1,000 degrees Celsius in less than 10 seconds. The CMP process removes material from a wafer to create a flat (planarized) surface. This process allows subsequent photolithography patterning steps to occur with greater accuracy and enables film layers to build with minimal height variations.
Applied offers several surface preparation systems. The Applied Raider SP can incorporate several types of cleaning methods, including spray, vapor, immersion, megasonics and anneal technologies with automated single or dual-side wafer processing for high volume manufacturing. Applied offers several products for measuring features and inspecting defects on the wafer during various stages of the fabrication process. These systems enable customers to characterize and control critical dimension (CD) and defect issues, especially at advanced generation technology nodes. Masks are used by photolithography systems to transfer microscopic circuit designs onto wafers. Applied provides systems for etching and inspecting masks.
Applied Global Services Segment
The Applied Global Services segment encompasses products and services designed to improve the performance and productivity, and reduce the environmental impact of the fab operations of semiconductor, LCD and solar PV manufacturers. Applied offers a portfolio of fab-wide operations services to maintain and optimize customers’ fabrication facilities. Applied Performance Services offers customers comprehensive equipment support. The Company also offers Performance Spares. In addition, Applied offers a range of products and services to extend the productive life of 200 millimeter semiconductor fabs, including new and remanufactured 200 millimeter equipment, system enhancements and fab transition services.
Applied offers automated factory-level and tool-level control software systems for semiconductor, LCD and solar cell manufacturing facilities. These enterprise solutions include manufacturing execution systems (MES) to automate the production of wafers and LCD and solar substrates, advanced process control systems, and scheduling and materials handling control systems. In fiscal 2010, the Company introduced its Applied SmartFactory MES software, a factory automation solution designed to help accelerate the production ramp of emerging technologies for solar PV, chip-packaging, and light-emitting diode (LED) applications. Applied also offers computerized maintenance management systems, performance tracking, and modeling and simulation tools for improving asset utilization. In fiscal 2010, the Company introduced its Applied iSYS platform, a fully-integrated abatement and vacuum pumping solution for controlling emissions and reducing energy costs in the fab.
Display Segment
Applied’s AKT subsidiary, designs, manufactures and sells equipment to fabricate thin film transistor LCDs for televisions, computer displays and other consumer-oriented electronic applications. Applied supplies a range of systems that process and test different glass substrate sizes. For fabricating the transistor layer of these panels, the Company offers a line of plasma-enhanced CVD (PECVD) systems that use multi-chamber platform architecture to deposit dielectric and semiconducting films. For manufacturing the color filter of LCD panels, Applied offers the AKT-NEW ARISTO for transparent conductive oxide film deposition. Applied also offers a line of electron beam test (EBT) systems for testing substrates during production for defective pixels and other imperfections.
Energy and Environmental Solutions Segment
The Energy and Environmental Solutions segment includes manufacturing solutions for the generation and conservation of energy. To increase the conversion efficiency and yields of solar PV devices, Applied offers manufacturing solutions for wafer-based crystalline silicon (c-Si) and glass based thin film applications. The Company also offers the Applied HCT Diamond Squarer system, which uses diamond wire technology to eliminate the need for abrasive slurry and reduces electricity consumption. Other products offered under the Energy and Environmental Solutions segment include roll-to-roll, vacuum Web coating systems for high-performance deposition of a range of films on flexible substrates for functional, aesthetic or optical properties. The Company’s Applied Topmet 4450, is a roll-to-roll machine for depositing ultra-thin aluminum films for flexible packaging applications.
OVERALL
Beta: 1.03
Market Cap (Mil.): $20,701.50
Shares Outstanding (Mil.): 1,319.41
Annual Dividend: 0.32
Yield (%): 2.04
FINANCIALS
AMAT.O Industry Sector
P/E (TTM): 15.46 24.52 19.30
EPS (TTM): 1,564.15 -- --
ROI: 16.92 8.32 16.19
ROE: 18.16 9.29 17.86
Name Age Since Current Position
Splinter, Michael 60 2009 Chairman of the Board, President, Chief Executive Officer
Morgan, James 70 2009 Chairman Emeritus
Davis, George 53 2006 Chief Financial Officer, Executive Vice President
Pinto, Mark 51 2011 Executive Vice President and General Manager - Energy & Environmental Solutions & Display
Thakur, Randhir 48 2009 Executive Vice President, General Manager - Silicon Systems
Sweeney, Joseph 62 2005 Senior Vice President, General Counsel, Corporate Secretary
Kerschbaum, Manfred 56 2009 Senior Vice President, Chief of Staff
Flanagan, Joseph 39 2010 Senior Vice President - Worldwide Operations and Supply Chain
Timko, Thomas 42 2010 Corporate Vice President, Chief Accounting Officer, Corporate Controller
Kifer, Ron 59 2006 Group Vice President, Chief Information Officer - Global Information Services
Humiston, Mary 45 2010 Group Vice President - Global Human Resources
Pappis, Charlie 50 2009 Group Vice President, General Manager - Applied Global Services
Bowers, Christopher 50 2009 Group Vice President, Corporate Initiatives
Nalamasu, Omkaram 2011 Chief Technology Officer
Roelandts, Willem 66 2008 Lead Independent Director
Forrest, Stephen 60 2008 Director
Karsner, Alexander 43 2008 Director
Parker, Gerhard 67 2002 Independent Director
Iannotti, Thomas 54 2005 Independent Director
de Geus, Aart 56 2007 Independent Director
Powell, Dennis 63 2007 Independent Director
Rogers, James 63 2008 Independent Director
Swan, Robert 50 2009 Independent Director
James, Susan 64 2009 Independent Director
COMPANY ADDRESS
Applied Materials Inc
3050 Bowers Avenue
P.O Box 58039
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.[2]
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 a 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.
In 2009, Applied Materials opened its Solar Technology Center—the world’s largest commercial solar energy research and development facility in Xi’an, China.
Applied Materials, Inc. (Applied), incorporated in 1967, provides manufacturing equipment, services and software to the global semiconductor, flat panel display, solar photovoltaic (PV) and related industries. Applied’s customers include manufacturers of semiconductor wafers and chips, flat panel liquid crystal displays (LCDs), solar PV cells and modules, and other electronic devices. These customers may use what they manufacture in their own end products or sell the items to other companies for use in advanced electronic components. Applied is a semiconductor fabrication equipment supplier. It is also a supplier of LCD fabrication equipment to the flat panel display industry and is the supplier of solar PV manufacturing systems to the solar industry. Applied operates in four segments: Silicon Systems Group, Applied Global Services, Display, and Energy and Environmental Solutions.
On December 21, 2009, Applied acquired Semitool, Inc., a supplier of electrochemical plating and wafer surface preparation equipment used by semiconductor packaging and manufacturing companies globally. In November 2009, Applied acquired substantially all the assets, including the intellectual property, of Advent Solar, Inc. (Advent Solar), a developer of advanced technology for c-Si solar photovoltaic cells and modules (PVs).
Silicon Systems Group Segment
Applied’s Silicon Systems Group segment develops, manufactures and sells a wide range of manufacturing equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs). Most chips are built on a silicon wafer base and include a variety of circuit components, such as transistors and other devices, that are connected by multiple layers of wiring (interconnects). Applied offers systems that perform most of the primary processes used in chip fabrication including atomic layer deposition (ALD), chemical vapor deposition (CVD), physical vapor deposition (PVD), electrochemical deposition (ECD) etch, rapid thermal processing (RTP), chemical mechanical planarization (CMP), wet cleaning and wafer metrology and inspection, as well as systems that etch, measure and inspect circuit patterns on masks used in the photolithography process. Applied’s semiconductor manufacturing systems are used by integrated device manufacturers and foundries to build and package memory, logic and other types of chips.
Deposition is a fundamental step in fabricating a chip. During deposition, layers of dielectric (an insulator), barrier, or electrically conductive (typically metal) films are deposited or grown on a wafer. Applied provides equipment to perform four types of deposition: ALD, CVD, ECD and PVD. In addition, Applied’s RTP systems can be used to perform certain types of dielectric deposition. ALD is an advanced technology in which atoms are deposited one layer at a time to build chip structures. This technology enables customers to fabricate thin films of either conducting or insulating material with uniform coverage in sub-nanometer sized structures. Applied offers ALD chambers for depositing tungsten and high-k/metal gate films. During the fiscal year ended October 31, 2010 (fiscal 2010), the Company introduced its Applied Endura iLB PVD/ALD system, an advancement in ALD technology that enables customers to shrink the contact structures to increase signal speeds in 22 nanometer and beyond logic and memory devices.
CVD is used to deposit dielectric and metal films on a wafer. During the CVD process, gases that contain atoms of the material to be deposited react on the wafer surface, forming a thin film of solid material. Electrochemical deposition is a process by which metal atoms from a chemical fluid (an electrolyte) are deposited on the surface of an immersed object. Its main application in the semiconductor industry is to deposit copper in interconnect wiring structures. The Company offers two ECD systems: the Applied Raider ECD for electroplating advanced chip interconnect structures, and the Applied Raider S ECD for advanced through-silicon via (TSV) packaging applications. PVD is a physical process in which atoms of a gas, such as argon, are accelerated toward a metal target.
Etching is used many times throughout the integrated circuit manufacturing process to selectively remove material from the surface of a wafer. In fiscal 2010, the Company introduced its Applied Centura AdvantEdge Mesa silicon etch system for fabricating nano-scale circuit features with angstrom-level precision. RTP is a process in which a wafer is subjected to rapid bursts of intense heat that can take the wafer from room temperature to more than 1,000 degrees Celsius in less than 10 seconds. The CMP process removes material from a wafer to create a flat (planarized) surface. This process allows subsequent photolithography patterning steps to occur with greater accuracy and enables film layers to build with minimal height variations.
Applied offers several surface preparation systems. The Applied Raider SP can incorporate several types of cleaning methods, including spray, vapor, immersion, megasonics and anneal technologies with automated single or dual-side wafer processing for high volume manufacturing. Applied offers several products for measuring features and inspecting defects on the wafer during various stages of the fabrication process. These systems enable customers to characterize and control critical dimension (CD) and defect issues, especially at advanced generation technology nodes. Masks are used by photolithography systems to transfer microscopic circuit designs onto wafers. Applied provides systems for etching and inspecting masks.
Applied Global Services Segment
The Applied Global Services segment encompasses products and services designed to improve the performance and productivity, and reduce the environmental impact of the fab operations of semiconductor, LCD and solar PV manufacturers. Applied offers a portfolio of fab-wide operations services to maintain and optimize customers’ fabrication facilities. Applied Performance Services offers customers comprehensive equipment support. The Company also offers Performance Spares. In addition, Applied offers a range of products and services to extend the productive life of 200 millimeter semiconductor fabs, including new and remanufactured 200 millimeter equipment, system enhancements and fab transition services.
Applied offers automated factory-level and tool-level control software systems for semiconductor, LCD and solar cell manufacturing facilities. These enterprise solutions include manufacturing execution systems (MES) to automate the production of wafers and LCD and solar substrates, advanced process control systems, and scheduling and materials handling control systems. In fiscal 2010, the Company introduced its Applied SmartFactory MES software, a factory automation solution designed to help accelerate the production ramp of emerging technologies for solar PV, chip-packaging, and light-emitting diode (LED) applications. Applied also offers computerized maintenance management systems, performance tracking, and modeling and simulation tools for improving asset utilization. In fiscal 2010, the Company introduced its Applied iSYS platform, a fully-integrated abatement and vacuum pumping solution for controlling emissions and reducing energy costs in the fab.
Display Segment
Applied’s AKT subsidiary, designs, manufactures and sells equipment to fabricate thin film transistor LCDs for televisions, computer displays and other consumer-oriented electronic applications. Applied supplies a range of systems that process and test different glass substrate sizes. For fabricating the transistor layer of these panels, the Company offers a line of plasma-enhanced CVD (PECVD) systems that use multi-chamber platform architecture to deposit dielectric and semiconducting films. For manufacturing the color filter of LCD panels, Applied offers the AKT-NEW ARISTO for transparent conductive oxide film deposition. Applied also offers a line of electron beam test (EBT) systems for testing substrates during production for defective pixels and other imperfections.
Energy and Environmental Solutions Segment
The Energy and Environmental Solutions segment includes manufacturing solutions for the generation and conservation of energy. To increase the conversion efficiency and yields of solar PV devices, Applied offers manufacturing solutions for wafer-based crystalline silicon (c-Si) and glass based thin film applications. The Company also offers the Applied HCT Diamond Squarer system, which uses diamond wire technology to eliminate the need for abrasive slurry and reduces electricity consumption. Other products offered under the Energy and Environmental Solutions segment include roll-to-roll, vacuum Web coating systems for high-performance deposition of a range of films on flexible substrates for functional, aesthetic or optical properties. The Company’s Applied Topmet 4450, is a roll-to-roll machine for depositing ultra-thin aluminum films for flexible packaging applications.
OVERALL
Beta: 1.03
Market Cap (Mil.): $20,701.50
Shares Outstanding (Mil.): 1,319.41
Annual Dividend: 0.32
Yield (%): 2.04
FINANCIALS
AMAT.O Industry Sector
P/E (TTM): 15.46 24.52 19.30
EPS (TTM): 1,564.15 -- --
ROI: 16.92 8.32 16.19
ROE: 18.16 9.29 17.86
Name Age Since Current Position
Splinter, Michael 60 2009 Chairman of the Board, President, Chief Executive Officer
Morgan, James 70 2009 Chairman Emeritus
Davis, George 53 2006 Chief Financial Officer, Executive Vice President
Pinto, Mark 51 2011 Executive Vice President and General Manager - Energy & Environmental Solutions & Display
Thakur, Randhir 48 2009 Executive Vice President, General Manager - Silicon Systems
Sweeney, Joseph 62 2005 Senior Vice President, General Counsel, Corporate Secretary
Kerschbaum, Manfred 56 2009 Senior Vice President, Chief of Staff
Flanagan, Joseph 39 2010 Senior Vice President - Worldwide Operations and Supply Chain
Timko, Thomas 42 2010 Corporate Vice President, Chief Accounting Officer, Corporate Controller
Kifer, Ron 59 2006 Group Vice President, Chief Information Officer - Global Information Services
Humiston, Mary 45 2010 Group Vice President - Global Human Resources
Pappis, Charlie 50 2009 Group Vice President, General Manager - Applied Global Services
Bowers, Christopher 50 2009 Group Vice President, Corporate Initiatives
Nalamasu, Omkaram 2011 Chief Technology Officer
Roelandts, Willem 66 2008 Lead Independent Director
Forrest, Stephen 60 2008 Director
Karsner, Alexander 43 2008 Director
Parker, Gerhard 67 2002 Independent Director
Iannotti, Thomas 54 2005 Independent Director
de Geus, Aart 56 2007 Independent Director
Powell, Dennis 63 2007 Independent Director
Rogers, James 63 2008 Independent Director
Swan, Robert 50 2009 Independent Director
James, Susan 64 2009 Independent Director
COMPANY ADDRESS
Applied Materials Inc
3050 Bowers Avenue
P.O Box 58039