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. The company also supplies equipment to produce coatings for flexible electronics, packaging and other applications. The company is headquartered in Santa Clara, California,[3] and is the second largest supplier of semiconductor equipment in the world based on revenue behind ASML of Netherlands.[4]

Applied Materials, Inc.
Company typePublic
FoundedNovember 10, 1967; 56 years ago (1967-11-10)
FounderMichael A. McNeilly
HeadquartersSanta Clara, California, U.S.
Area served
Key people
RevenueIncrease US$26.52 billion (2023)
Decrease US$7.654 billion (2023)
Increase US$6.856 billion (2023)
Total assetsIncrease US$30.73 billion (2023)
Total equityIncrease US$16.35 billion (2023)
Number of employees
c. 34,000 (2023)
Footnotes / references



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] The following year, 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.[14]

In January 2008, Applied Materials purchased Baccini, an Italian company and 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 acquired Semitool Inc. in December 2009,[17] and announced its acquisition of Varian Semiconductor in May 2011.[18] Applied Materials then announced a planned 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] 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.[22]

In 2015, Applied Materials left the solar wafer sawing and the solar ion implantation businesses.[23]

Applied Materials was named among FORTUNE World's Most Admired Companies in 2018.[24]

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.[25][26][27]

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.[28]



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.[29]

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
2021 23,063 5,888
2022 25,785 6,525
2023 26,517 6,856



Applied is organized into three major business sectors: Semiconductor Products, Applied Global Services, and Display and Adjacent Markets.[30] Applied Materials also operates a venture investing arm called Applied Ventures.[31]

Semiconductor Products


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.[32] The company acquired Semitool for this group in late 2009.[33] In 2019, Applied Materials agreed to buy semiconductor manufacturer Kokusai for $2.2 Billion.[34]

Applied Global Services


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.[30]

Display and Adjacent Markets


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)


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).[35] In 2010, Applied announced that it was abandoning the thin film market and closing down their SunFab division.[36] 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.[37]

In 2008, Applied acquired privately held, Italy-based Baccini SpA for $330M, company that worked in the metallization steps of solar cell manufacturing.[38] The company was listed at the top of VLSI Research's list of supplier of photovoltaic manufacturing equipment for 2008, with sales of $797M.[39]

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".[30]



Applied moved into its Bowers Avenue headquarters in Santa Clara, CA, in 1974[40] and operates in Europe, Japan, Canada, the United States, Israel, China, Italy, India, Korea, Southeast Asia, Singapore and Taiwan.[41]


  • Chairman of the Board of Directors: Thomas J. Iannotti[2]
  • President and Chief Executive Officer: Gary E. Dickerson[42]
  • Chief Financial Officer: Brice Hill[43]
  • Chief Technology Officer: Omkaram Nalamasu[44]

See also



  1. ^ "U.S. SEC: Applied Materials, Inc. Form 10-K". U.S. Securities and Exchange Commission. 15 December 2021.
  2. ^ a b "Applied Materials Names Thomas Iannotti as Chairman of the Board of Directors". Printed Electronics Now. 10 March 2017. Retrieved 19 October 2017.
  3. ^ "Applied Materials Inc" Archived 2017-04-07 at the Wayback Machine. Bloomberg L.P. Retrieved 3 March 2016.
  4. ^ Team, Trefis. "Understanding Applied Materials' Business Model And Performance Across Segments". Forbes. Retrieved 2023-07-22.
  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.{{cite news}}: CS1 maint: multiple names: authors list (link)
  18. ^ Nicholson, Chris V. (4 May 2011). "Applied Materials to Buy Varian". The New York Times.
  19. ^ Pfanner, Michael J. de la Merced and Eric (24 September 2013). "U.S. Manufacturer of Chip-Making Equipment Buys Japanese Rival". The New York Times.
  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. ^ "Applied Materials withdraws from solar ion implant and wafer sawing sectors". 19 August 2015.
  24. ^ "The World's Most Admired Companies for 2018". Fortune. Retrieved 2018-07-26.
  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. ^ Mehta, Chavi (29 March 2021). "Applied Materials terminates $2.2 billion deal for Japan's Kokusai Electric". Reuters.
  28. ^ Freifeld, Karen (2023-11-17). "Applied Materials under US criminal probe for shipments to China's SMIC-sources". Reuters. Retrieved 2023-11-17.
  29. ^ "Applied Materials Inc. -". Retrieved 2018-12-03.
  30. ^ a b c "Applied Materials Announces Record Results" (Press release). Applied Materials. 18 August 2016. Retrieved 19 October 2017.
  31. ^ Spencer, Malia (20 February 2014). "Why Intel, Applied Materials are banking on a Corvallis startup". Portland Business Journal. Retrieved 4 May 2016.
  32. ^ Shields, Anne (12 January 2015). "Overview of Applied Materials Silicon Systems segment". Market Realist. Retrieved 15 April 2016.
  33. ^ Pimentel, Benjamin; Bartash, Jeffry (17 November 2009). "Applied Materials to acquire Semitool for $364 million". MarketWatch. Retrieved 15 April 2016.
  34. ^ "Applied Materials to Buy Kokusai From KKR for $2.2 Billion". Retrieved 2019-07-01.
  35. ^ ""AMAT's SunFab Modules Awarded IEC Certification." Renewable Energy World. January 16, 2009". 2009-01-16.
  36. ^ Kanellos, Michael (21 July 2010). "Applied Materials Kills its SunFab Solar Business". Greenech Media. Retrieved 3 March 2016.
  37. ^ ""Applied Materials Acquires Solar Wafer Manufacturer." Renewable Energy World. June 27, 2007". 2007-06-27.
  38. ^ ""Applied Materials to Accelerate Its Solar Roadmap with Acquisition of Baccini." Renewable Energy World. November 26, 2007". 2007-11-26.
  39. ^ "Applied tops VLSI's Top 10 PV manufacturing equipment suppliers for 2008 - Photovoltaics International". Archived from the original on 2009-07-14. Retrieved 2009-07-14.
  40. ^ "1967-1979: The Early Years - Applied Materials". Archived from the original on 2020-01-20. Retrieved 2016-03-03.
  41. ^ "10-K".
  42. ^ "Leadership | Applied Materials". Archived from the original on 2011-03-24. Retrieved 2011-03-26.
  43. ^ "Applied Materials taps former Xilinx executive Brice Hill as CFO". Market Watch. March 7, 2022. Retrieved March 7, 2022.
  44. ^ "Press Releases - Applied Materials". Archived from the original on 2012-01-18. Retrieved 2011-01-25.
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