Every time a chip maker wants to build a new factory or add capacity to existing ones, Applied Materials is on the list of companies to start calling. Considered a bellwether for factory utilization, Applied sells pricey new equipment to leading-edge chip makers such as Intel, Advanced Micro Devices, and Taiwan Semiconductor. It also has a brisk business selling refurbished equipment to Chinese chip manufacturers.
With orders expected to slow for the rest of the year, CEO Michael Splinter is working to better manage the ups and downs of the notoriously cyclical industry by boosting the company's equipment-servicing business. In the past year, revenue from that segment grew from 12% of overall sales to 20%. The Santa Clara (Calif.) giant also has upped the ante in its rivalry with KLA-Tencor by introducing a new laser inspection tool for equipment. Researchers at Deutsche Bank Securities say this could help it gain more share in the coming year.
All figures are for the most recent available 12 months.
* Latest available data for the 12-month period ended Dec. 31, Jan. 31, Feb. 29, Mar. 31, or Apr. 30. For companies that do not report quarterly, the most recent annual data were used.
Data provided by Standard & Poor's Compustat, BusinessWeek
Applied Materials Inc. engages in developing, manufacturing, marketing, and servicing integrated circuit fabrication equipment for the semiconductor industry worldwide. Its integrated chips are built on a silicon wafer base and include various circuit components, such as transistors and other devices that are connected by multiple layers of wiring. The company manufactures systems that perform the primary steps in the chip fabrication process, including atomic layer deposition, chemical vapor deposition (CVD), physical vapor deposition, electrochemical plating, etch, ion implantation, rapid thermal processing, chemical mechanical polishing, and metrology and wafer inspection, as well as systems that generate, etch, measure, and inspect circuit patterns on masks used in the photolithography process. In addition, Applied Materials, through its subsidiary, AKT Inc., manufactures CVD systems and array testers for making flat panel displays used in notebook computers, desktop monitors, televisions, and other applications. The company markets and sells its products primarily in North America and Europe, as well as in Japan, Korea, Taiwan, and the Asia-Pacific region to semiconductor wafer manufacturers and semiconductor integrated circuit/chip manufacturers. Applied Materials was organized in 1967 and is headquartered in Santa Clara, Calif.
No. of Employees
12,191
Data provided by
Michael R. Splinter
Bio
Michael R. Splinter has been Chief Executive Officer and President of Applied Materials Inc. since April 30, 2003. Mr. Splinter worked for nearly 20 years at Intel. Mr. Splinter has been a Member of the Board of Directors of Applied Materials Inc. since April 30, 2003. Mr. Splinter is a native of Wisconsin and earned both a B.S. and M.S. in Electrical Engineering from the University of Wisconsin, Madison.
* Latest available fiscal year
** The sum of the net value of options exercised and held in the latest available fiscal year
Key Executives
Michael R. Splinter, Franz Janker, Nancy H. Handel, Joseph R. Bronson
Board Members
Michael R. Splinter, James C. Morgan, Dan Maydan, Michael H. Armacost, Deborah A. Coleman, Herbert M. Dwight, Jr., Philip V. Gerdine, Paul R. Low, Steven L. Miller, Gerhard H. Parker, Willem P. Roelandts
