Applied Materials

Founded in 1967 by Michael A. McNeilly and others, Applied Materials went public in 1972 on the National Association of Securities Dealers Automated Quotations (NASDAQ), a then-recently established stock exchange. 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.{{cite book|last1=Turner|first1=Tyya N.|title=Vault Guide to the Top Manufacturing Employers|date=14 June 2005|publisher=Vault|isbn=978-1581313246|page=30|url=https://books.google.com/books?id=e6puQvy0Yf8C&pg=PA30|access-date=4 May 2016}}{{cite news|last1=McCaffery|first1=Richard|title=TMF Interview With Applied Materials Chairman and Chief Executive James Morgan|url=http://www.fool.com/foolaudio/transcripts/1999/stocktalk991222_amat.htm|access-date=16 April 2016|work=The Motley Fool|date=17 December 1999|archive-url=https://web.archive.org/web/20160811225937/http://www.fool.com/foolaudio/transcripts/1999/stocktalk991222_amat.htm|archive-date=11 August 2016|url-status=dead}} By 1978, sales increased by 17%.{{cite book|last1=Wheelwright|first1=Steven C.|title=Managing New Product and Process Development: Text Cases|date=2010|publisher=Simon and Schuster|isbn=9781451602319|page=428|url=https://books.google.com/books?id=awmav051w24C&pg=PA428|access-date=4 May 2016}}

In 1984, Applied Materials became the first U.S. semiconductor equipment manufacturer to open its own technology center in Japan,{{cite news|title=U.S. chip firm constructs R&D center in Japan|url=https://books.google.com/books?id=1mW5f8lXoEYC&pg=PA119|access-date=16 April 2016|work=ComputerWorld|date=15 October 1984}} and the first semiconductor equipment company to operate a service center in China.{{cite news|title=Applied Materials expands presence in China|url=http://electroiq.com/blog/2001/10/applied-materials-expands-presence-in-china/|access-date=16 April 2016|work=Solid State Technology|date=18 October 2001|archive-url=https://web.archive.org/web/20160804160904/http://electroiq.com/blog/2001/10/applied-materials-expands-presence-in-china/|archive-date=4 August 2016|url-status=dead}} 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.{{cite book|last1=Tsai|first1=Terence|last2=Cheng|first2=Borshiuan|title=The Silicon Dragon: High-tech Industry in Taiwan|date=1 January 2006|publisher=Edward Elgar Publishing|isbn=1840642408|page=116|url=https://books.google.com/books?id=xBNEaMFMPsMC&pg=PA116|access-date=16 April 2016}}

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.{{Cite news

| title = Scientologizing

| newspaper = Forbes

| page = 25

| date = September 14, 1992

}}

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

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.{{cite news|title=Applied Materials Buys Orbot Instruments, Opal for $285 Mln; Opal chairman Meny Erad: "This is a great day for Israeli high-tech." |url=http://www.globes.co.il/serveen/globes/docview.asp?did=352491 |newspaper=Globes |date=26 November 1996 |url-status=dead |archive-url=https://web.archive.org/web/20130116102738/http://www.globes.co.il/serveen/globes/docview.asp?did=352491 |archive-date=16 January 2013 }}

In 2000, Etec Systems, Inc. was purchased.{{Cite web|url=https://money.cnn.com/2000/01/12/deals/appliedetec/|title=Applied Materials buys Etec - Jan. 12, 2000|website=money.cnn.com|access-date=2018-04-06}} On June 27, 2001, Applied Materials 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.{{cite web|url=http://pdf.secdatabase.com/767/0000006951-01-500008.pdf |title=Applied Materials, Inc. Inc August 2001 Quarterly Report, Form 10-Q, Filing Date August 24, 2001 |publisher=secdatabase.com |access-date =Dec 26, 2012}}

In January 2008, Applied Materials purchased Baccini, an Italian company and designer of tools used in manufacturing solar cells.{{cite web|url=http://www.marketwatch.com/story/applied-materials-acquires-italys-baccini|title=Applied Materials acquires Baccini of Italy|first=Benjamin|last=Pimentel|website=marketwatch.com}}

In 2009, Applied Materials opened its Solar Technology Center, the world's largest commercial solar energy research and development facility, in Xi'an, China.{{cite news|last1=Lim|first1=Louisa|title=The Green Rush Is On In China|url=https://www.npr.org/templates/story/story.php?storyId=121512377|access-date=4 May 2016|work=NPR|date=16 December 2009}}

Applied Materials acquired Semitool Inc. in December 2009,{{Cite news|url=https://www.marketwatch.com/story/applied-materials-to-buy-semitool-for-364-millon-2009-11-17|title=Applied Materials to acquire Semitool for $364 million|last=Bartash|first=Benjamin Pimentel, Jeffry|work=MarketWatch|access-date=2018-04-06|language=en-US}} and announced its acquisition of Varian Semiconductor in May 2011.{{cite web|url=https://dealbook.nytimes.com/2011/05/04/applied-materials-to-buy-varian-for-5-billion/|title=Applied Materials to Buy Varian|first=Chris V.|last=Nicholson|website=The New York Times|date=4 May 2011 }} Applied Materials then announced a planned merger with Tokyo Electron on September 24, 2013.{{cite web|url=https://dealbook.nytimes.com/2013/09/24/applied-materials-to-merge-with-tokyo-electron/|title=U.S. Manufacturer of Chip-Making Equipment Buys Japanese Rival|first=Michael J. de la Merced and Eric|last=Pfanner|website=The New York Times|date=24 September 2013 }} If it had been approved by government regulators, the proposed combined company, to be called Eteris,{{cite news|url=https://www.wsj.com/articles/applied-materials-and-tokyo-electron-pick-eteris-for-post-merger-name-1404781083|title=Applied Materials and Tokyo Electron Pick 'Eteris' For Post-Merger Name|first=Don|last=Clark|date=8 July 2014|via=www.wsj.com|newspaper=Wall Street Journal}} would have been the world's largest supplier of semiconductor processing equipment, with a total market value of $29 billion.{{Cite news|url=https://www.wsj.com/amp/articles/tokyo-electron-applied-materials-agree-to-merge-1380020997|title = Applied Materials to Acquire Tokyo Electron|newspaper = Wall Street Journal|date = 25 September 2013}} However, 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.{{cite news|url=https://www.nytimes.com/2015/04/28/business/dealbook/makers-of-chip-gear-call-off-10-billion-merger.html|title=Applied Materials and Tokyo Electron Call Off $10 Billion Merger|date=27 April 2015|newspaper=The New York Times|last1=Soble|first1=Jonathan}}

In 2015, Applied Materials left the solar wafer sawing and the solar ion implantation businesses.{{cite web | url=https://www.pv-tech.org/applied_materials_withdraws_from_solar_ion_implant_and_wafer_sawing_sectors/ | title=Applied Materials withdraws from solar ion implant and wafer sawing sectors | date=19 August 2015 }}

Applied Materials was named among FORTUNE World's Most Admired Companies in 2018.{{Cite web|url=http://fortune.com/worlds-most-admired-companies|title=The World's Most Admired Companies for 2018|website=Fortune|language=en-US|access-date=2018-07-26}}

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 terminated the deal in March 2021 citing delays in getting approval from China's regulator.{{Cite web|url=https://asia.nikkei.com/Business/Business-deals/Exclusive-Applied-Materials-to-buy-KKR-s-Kokusai-Electric-for-2.2bn|title=Exclusive: Applied Materials to buy KKR's Kokusai Electric for $2.2bn|website=Nikkei Asian Review}}{{Cite news | url=https://www.bloomberg.com/news/articles/2019-07-01/applied-materials-said-to-buy-kokusai-electric-for-2-3-billion |title = Applied Materials to Buy Kokusai from KKR for $2.2 Billion|newspaper = Bloomberg.com|date = 2020-01-10}}{{cite news |url=https://www.reuters.com/article/us-kokusai-m-a-applied-materials/applied-materials-terminates-2-2-billion-deal-for-japans-kokusai-electric-idUSKBN2BL1I4 |title=Applied Materials terminates $2.2 billion deal for Japan's Kokusai Electric |date=29 March 2021 |work=Reuters |first=Chavi |last=Mehta}}

In November 2023, Applied Materials was reported to be under criminal investigation by the United States Department of Justice for routing equipment to Semiconductor Manufacturing International Corporation via South Korea in violation of US sanctions.{{Cite news |last=Freifeld |first=Karen |date=2023-11-17 |title=Applied Materials under US criminal probe for shipments to China's SMIC-sources |language=en |work=Reuters |url=https://www.reuters.com/technology/applied-materials-under-us-criminal-probe-shipments-chinas-smic-sources-2023-11-16/ |access-date=2023-11-17}}

For the fiscal year 2021, Applied Materials reported earnings of US$5.888 billion, with an annual revenue of US$23.063 billion, a 34% increase over the previous fiscal. Applied Materials market capitalization was valued at over US$36.6 billion in November 2018.{{Cite web|url=https://www.annualreports.com/Company/applied-materials-inc|title=Applied Materials Inc. - AnnualReports.com|website=www.annualreports.com|access-date=2018-12-03}}

Applied is organized into three major business sectors: Semiconductor Products, Applied Global Services, and Display and Adjacent Markets.{{cite press release |date=18 August 2016 |title=Applied Materials Announces Record Results |url=http://www.appliedmaterials.com/company/news/press-releases/2016/08/applied-materials-announces-record-results |publisher=Applied Materials |access-date=19 October 2017}} Applied Materials also operates a venture investing arm called Applied Ventures.{{cite news|last1=Spencer|first1=Malia|title=Why Intel, Applied Materials are banking on a Corvallis startup|url=http://www.bizjournals.com/portland/morning_call/2014/02/why-corvallis-may-be-critical-to-the.html|access-date=4 May 2016|work=Portland Business Journal|date=20 February 2014}}

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.{{cite news|last1=Shields|first1=Anne|title=Overview of Applied Materials Silicon Systems segment|url=http://marketrealist.com/2015/01/overview-applied-materials-silicon-systems-segment/|access-date=15 April 2016|work=Market Realist|date=12 January 2015}} The company acquired Semitool for this group in late 2009.{{cite news|last1=Pimentel|first1=Benjamin|last2=Bartash|first2=Jeffry|title=Applied Materials to acquire Semitool for $364 million|url=http://www.marketwatch.com/story/applied-materials-to-buy-semitool-for-364-millon-2009-11-17|access-date=15 April 2016|work=MarketWatch|date=17 November 2009}} In 2019, Applied Materials agreed to buy semiconductor manufacturer Kokusai for $2.2 Billion.{{Cite web|url=https://finance.yahoo.com/news/applied-materials-said-buy-kokusai-055450368.html|title=Applied Materials to Buy Kokusai From KKR for $2.2 Billion|website=finance.yahoo.com|language=en-US|access-date=2019-07-01}}

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.

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|date=December 2017}}

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 Materials 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).{{Cite web|url=http://www.renewableenergyworld.com/articles/2009/01/amats-sunfab-modules-awarded-iec-certification-54520.html|title="AMAT's SunFab Modules Awarded IEC Certification." Renewable Energy World. January 16, 2009|date=2009-01-16}} In 2010, Applied announced that it was abandoning the thin film market and closing down their SunFab division.{{cite web | last = Kanellos| first = Michael| title = Applied Materials Kills its SunFab Solar Business| publisher = Greenech Media| date = 21 July 2010| url = http://www.greentechmedia.com/articles/read/applied-materials-kills-its-sunfab-solar-business| access-date = 3 March 2016 }} 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.{{Cite web|url=http://www.renewableenergyworld.com/articles/2007/06/applied-materials-acquires-solar-wafer-manufacturer-49130.html|title="Applied Materials Acquires Solar Wafer Manufacturer." Renewable Energy World. June 27, 2007|date=2007-06-27}}

In 2008, Applied acquired privately held, Italy-based Baccini SpA for $330M, company that worked in the metallization steps of solar cell manufacturing.{{Cite web|url=http://www.renewableenergyworld.com/articles/2007/11/applied-materials-to-accelerate-its-solar-roadmap-with-acquisition-of-baccini-50648.html|title="Applied Materials to Accelerate Its Solar Roadmap with Acquisition of Baccini." Renewable Energy World. November 26, 2007|date=2007-11-26}} The company was listed at the top of VLSI Research's list of supplier of photovoltaic manufacturing equipment for 2008, with sales of $797M.{{cite web|url=http://www.pv-tech.org/news/_a/applied_tops_vlsis_top_10_pv_manufacturing_equipment_suppliers_for_2008/ |title=Applied tops VLSI's Top 10 PV manufacturing equipment suppliers for 2008 - Photovoltaics International |access-date=2009-07-14 |url-status=dead |archive-url=https://web.archive.org/web/20090714232834/http://www.pv-tech.org/news/_a/applied_tops_vlsis_top_10_pv_manufacturing_equipment_suppliers_for_2008 |archive-date=2009-07-14 }}

Since July 2016 the Energy and Environmental Solutions sector is no longer reported separately. Remaining solar business activities have been included in "Corporate and Others".

Applied moved into its Bowers Avenue headquarters in Santa Clara, California, in 1974{{cite web |title=1967-1979: The Early Years - Applied Materials |url=http://www.appliedmaterials.com/company/about/history/early-years |url-status=dead |archive-url=https://web.archive.org/web/20200120212653/http://www.appliedmaterials.com/company/about/history/early-years |archive-date=2020-01-20 |access-date=2016-03-03 |website=www.appliedmaterials.com}} and operates in Europe, Japan, Canada, the United States, Israel, China, Italy, India, Korea, Southeast Asia, Singapore and Taiwan.{{cite web|url=https://www.sec.gov/Archives/edgar/data/6951/000000695115000034/amat10252015-10xkdoc.htm#s62D7400CD0905E1A936E4CFB781A1305|title=10-K|website=www.sec.gov}}

• Chairman of the Board of Directors: Thomas J. Iannotti{{cite news|title=Applied Materials Names Thomas Iannotti as Chairman of the Board of Directors|url=http://www.printedelectronicsnow.com/contents/view_breaking-news/2017-03-10/applied-materials-names-thomas-iannotti-as-chairman-of-the-board-of-directors/46398|access-date=19 October 2017|work=Printed Electronics Now|date=10 March 2017}}
• President and chief executive officer: Gary E. Dickerson{{Cite web |url=http://www.appliedmaterials.com/about/leadership |title=Leadership | Applied Materials |access-date=2011-03-26 |archive-url=https://web.archive.org/web/20110324005350/http://www.appliedmaterials.com/about/leadership |archive-date=2011-03-24 |url-status=dead }}
• Chief Financial Officer: Brice Hill{{cite news |last1= |first1= |date=March 7, 2022 |title=Applied Materials taps former Xilinx executive Brice Hill as CFO |work=Market Watch |url=https://www.marketwatch.com/story/applied-materials-taps-former-xilinx-executive-brice-hill-as-cfo-2022-03-07 |access-date=March 7, 2022}}
• Chief Technology Officer: Omkaram Nalamasu{{cite web|url=http://www.appliedmaterials.com/news/articles/applied-materials-appoints-omkaram-nalamasu-chief-technology-officer|title=Press Releases - Applied Materials|website=www.appliedmaterials.com|access-date=2011-01-25|archive-date=2012-01-18|archive-url=https://web.archive.org/web/20120118035343/http://www.appliedmaterials.com/news/articles/applied-materials-appoints-omkaram-nalamasu-chief-technology-officer|url-status=dead}}

• Lam Research
• {{Portal-inline|San Francisco Bay Area}}
• {{Portal-inline|Companies}}

{{Reflist|30em}}

• {{Official website}}

{{Finance links

| name = Applied Materials, Inc.

| symbol = AMAT

| sec_cik = 6951

| yahoo = AMAT

| google = AMAT:NASDAQ

}}

{{NASDAQ-100}}

{{Major semiconductor companies}}

{{Authority control}}

Category:1967 establishments in California

Category:Companies based in Santa Clara, California

Category:Companies listed on the Nasdaq

Category:American companies established in 1967

Category:Computer companies established in 1967

Category:Computer companies of the United States

Category:Computer hardware companies

Category:Electronics companies established in 1967

Category:Solar energy companies of the United States

Category:Equipment semiconductor companies

Category:Semiconductor companies of the United States

Category:Superfund sites in California

Category:Technology companies based in the San Francisco Bay Area

Category:Thin-film cell manufacturers

Category:1970s initial public offerings