Applied Materials Inc
- Applied Materials is a leader in materials engineering solutions used to produce virtually every new chip and advanced display.
- Applied provides manufacturing equipment, services and software to the semiconductor, display, and related industries
- Applied’s customers include manufacturers of semiconductor wafers and chips, liquid crystal and organic light-emitting diode (OLED) displays, and other electronic devices.
Applied Materials (Nasdaq: AMAT, LSE: 0R1A) is a leader in materials engineering solutions used to produce virtually every new chip and advanced display. The company's expertise in modifying materials at atomic levels and on an industrial scale. Applied provides manufacturing equipment, services and software to the semiconductor, display, and related industries. Applied’s customers include manufacturers of semiconductor wafers and chips, liquid crystal and organic light-emitting diode (OLED) displays, and other electronic devices.
Applied Materials’ Innovative Pattern-Shaping Technology Reduces the Cost, Complexity and Environmental Impact of Advanced Chip Manufacturing
Feb 28, 2023; Applied Materials, Inc. today unveiled a breakthrough in patterning technology that allows chipmakers to create high-performance transistors and interconnect wiring with fewer EUV lithography steps, thereby lowering the cost, complexity and environmental impact of advanced chipmaking.
Customers increasingly use EUV double patterning to print chip features smaller than the resolution limits of EUV to optimize chip area and cost. Using EUV double patterning, chipmakers split a high-density pattern in half and produce two masks that adhere to the resolution limits of EUV. Both halves of the pattern are combined on intermediate patterning films and then etched into the wafer. While double patterning is effective at increasing feature density, it adds design and patterning complexity along with process steps that consume time, energy, materials and water – and increase the cost of wafer fabs and wafer production.
First Quarter 2023 Results
Feb 16, 2023; Applied Materials, Inc. reported results for its first quarter ended Jan. 29, 2023.
Applied generated revenue of $6.74 billion. On a GAAP basis, the company achieved gross margin of 46.7 percent, operating income of $1.97 billion or 29.2 percent of net sales, and record earnings per share (EPS) of $2.02.
On a non-GAAP adjusted basis, the company reported gross margin of 46.8 percent, operating income of $1.99 billion or 29.5 percent of net sales, and EPS of $2.03.
The company generated $2.27 billion in cash from operations and returned $470 million to shareholders including $250 million in share repurchases and $220 million in dividends.
In the second quarter of fiscal 2023, Applied expects net sales to be approximately $6.40 billion, plus or minus $400 million, which includes ongoing supply chain challenges and a negative estimated impact of $250 million dollars related to a cybersecurity event recently announced by one of its suppliers. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.66 to $2.02.
Full Year Results
In fiscal 2022, Applied generated revenue of $25.79 billion. On a GAAP basis, the company recorded gross margin of 46.5 percent, operating income of $7.79 billion or 30.2 percent of net sales, and EPS of $7.44.
On a non-GAAP adjusted basis, the company reported gross margin of 46.6 percent, operating income of $7.86 billion or 30.5 percent of net sales, and EPS of $7.70.
The company generated $5.40 billion in cash from operations and returned $6.98 billion to shareholders including $6.10 billion in share repurchases and $873 million in dividends.
For the fiscal year 2022 Semiconductor Systems generated $18,797 which is 73% of the total net sales. Applied Global Services generated $5,543 which is 22% of the total net sales. Display and Adjacent Markets generated $1,331 which is 5% of the total net sales. Corporate and Other generated $114.
China region sales $7,254 which is 28% of the total net sales. Korea region sales $4,395 which is 17% of the total net sales. Taiwan region sales $6,262 which is 24% of the total net sales. Japan region sales $2,012 which is 8% of the total net sales. Southeast Asia region sales $1,084 which is 4% of the total net sales. Asia Pacific region sales $21,007 which is 81% of the total net sales. United States region sales$3,104 which is 12% of the total net sales. Europe region sales $1,674 which is 7% of the total net sales. The total net sales for fiscal year 2022 was $25,785.
Incorporated in 1967, Applied Materials, Inc. is a Delaware corporation. A global company in materials engineering, Applied provides manufacturing equipment, services and software to the semiconductor, display and related industries. Applied provides manufacturing equipment, services and software to the semiconductor, display, and related industries. Applied’s customers include manufacturers of semiconductor wafers and chips, liquid crystal and organic light-emitting diode (OLED) displays, and other electronic devices.
Applied operates in three reportable segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.
Products and Technologies
Applied’s Semiconductor Systems segment develops, manufactures and sells a wide range of manufacturing equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs). The Semiconductor Systems segment includes semiconductor capital equipment used for many steps of the chip making process including the transfer of patterns into device structures, transistor and interconnect fabrication, metrology, inspection and review, and packaging technologies for connecting finished IC die.
Applied also provides manufacturing equipment that helps improve performance, power, yield and cost of semiconductor devices that use mature process technologies and serve specialty markets such as the Internet of Things, Communications, Automotive, Power and Sensors. Applied’ Semiconductor Systems equipment is sold to integrated device manufacturers and foundries worldwide.
Applied Global Services
The Applied Global Services® (AGS) segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, remanufactured earlier generation equipment and factory automation software for semiconductor, display and other products. Customer demand for products and services is fulfilled through a global distribution system in more than 170 locations and trained service engineers located in close proximity to customer sites to support over 49,000 installed Applied semiconductor, display and other manufacturing systems worldwide.
Display and Adjacent Markets
The Display and Adjacent Markets segment is comprised primarily of products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display technologies for TVs, monitors, laptops, personal computers (PCs), electronic tablets, smart phones, and other consumer-oriented devices.
Research, Development and Engineering
Applied’s product development and engineering organizations are located primarily in the United States, as well as in China, Europe, India, Israel, Korea, Singapore and Taiwan. In addition, certain outsourced RD&E activities, process support and customer demonstrations are performed in the United States, India, China, Singapore and Taiwan.
Patents and Licenses
Applied has more than 17,300 patents in the United States and other countries, and additional applications are pending for new inventions.
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