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Applied Materials

Essay by   •  January 3, 2011  •  565 Words (3 Pages)  •  1,070 Views

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Applied Materials, Inc, the world largest semiconductor equipment maker was founded in 1967, California. Applied Materials develops and produces technologies to be used in semiconductor equipments, flat panel display, glass coating for homes and buildings, PV solar cells, etc. Since the beginning, Applied Materials has been focusing its business in semiconductor industry and expands it through some up and downs throughout the industry development. Applied Materials mainly operates in four segments that represent its growth prospects:

- Silicon segment consists of design, manufacturing, and sales of semiconductor products. Earns the most net sales (Appendix).

- Fab solutions, which is a range of products to maintain and optimize customers' semiconductor fabs.

- Display segment that designs, manufactures, sells and services flat panel displays equipment.

- Adjecent Technologies segment that designs, manufactures, sells, and services for customers who fabricate solar cells, web products and energy-efficient glass.

The following are several products that Applied Materials engaged in:

- Etch Systems

- Chemical mechanical polishing/planarization systems

- Manufacturing process optimization software

- Silicon and thermal deposition

- Thin film silicon for solar cells

During its development in the industry, in order to expand or enter to a new market Applied acquired and sold or shut down some companies such as Galamar Industries, Etec Systems, Opal Instruments, etc. In 2006, Applied entered the glass and web coating industries by acquiring Applied Film for about $484 million. Applied Film is a leading supplier for thin-film deposition equipment used to produce LCD, solar cells, and energy-efficient glass. Considering the prospect, Applied decided to create a new segment called the Adjacent Technologies, which produces equipment fabricate solar photovoltaic cells, flexible electronics, and energy-efficient glass. Applied Materials also decided to enter the solar energy industry in 2007 by acquiring HCT Shaping Systems, which supplies equipment to produce solar cells. On Marc 2007, Applied acquired Brooks Software for $137 million, which is a provider of factory management and control software in semiconductor and LCD industries.

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