Applied Materials

Applied Materials, Inc.

Type| Public

Traded as

* NASDAQ: AMAT
* Nasdaq-100 component
* S&P 100 component
* S&P 500 component

Industry| Semiconductors
Founded| November 10, 1967; 58 years ago (1967-11-10)
Founder| Michael A. McNeilly
Headquarters| Santa Clara, California, U.S.

Area served

| Worldwide

Key people

* Gary E. Dickerson (President & CEO)
* Thomas J. Iannotti (Chairman)

Revenue|  US$28.37 billion (2025)

Operating income

|  US$8.289 billion (2025)

Net income

|  US$6.998 billion (2025)
Total assets|  US$36.30 billion (2025)
Total equity|  US$20.42 billion (2025)

Number of employees

| 36,500 (2025)
Website| appliedmaterials.com
Footnotes / references
Financials as of October 26, 2025[update].[1]

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,[2] and is the second largest supplier of semiconductor equipment in the world based on revenue behind Dutch company ASML.[3][4]

## Contents

* 1 History
* 2 Finances
* 3 Organization
* 3.1 Semiconductor Products
* 3.2 Applied Global Services
* 3.3 Display and Adjacent Markets
* 3.4 Energy and Environmental Solutions (former sector)
* 4 Locations
* 5 Management
* 6 See also
* 7 References
* 8 External links

## History

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.[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 had been 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] 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 it had been approved by government regulators, the proposed combined company, to be called Eteris,[20] would have been 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 (DOJ) for routing equipment to Semiconductor Manufacturing International Corporation via South Korea in violation of US sanctions.[28] The company settled with the DOJ, paying a penalty of 252 million dollars in February 2026.[29]

On August 15, 2025, Applied Materials shares tumbled 12% after issuing weak sales and profit forecasts, with U.S.-China trade tensions weighing heavily on demand and visibility.[30]

## Finances

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.[31]

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
2024  | 27,176  | 7,177

## Organization

Applied is organized into three major business sectors: Semiconductor Products, Applied Global Services, and Display and Adjacent Markets.[32] Applied Materials also operates a venture investing arm called Applied Ventures.[33]

### 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.[34] The company acquired Semitool for this group in late 2009.[35] In 2019, Applied Materials agreed to buy semiconductor manufacturer Kokusai for $2.2 Billion.[36]

### 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.[32]

### Display and Adjacent Markets

AGS combined an existing business unit with the display business of Applied Films Corporation, acquired in mid-2006.

### 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).[37] In 2010, Applied announced that it was abandoning the thin film market and closing down their SunFab division.[38] 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.[39]

In 2008, Applied acquired privately held, Italy-based Baccini SpA for $330M, company that worked in the metallization steps of solar cell manufacturing.[40] The company was listed at the top of VLSI Research's list of supplier of photovoltaic manufacturing equipment for 2008, with sales of $797M.[41]

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".[32]

## Locations

Applied moved into its Bowers Avenue headquarters in Santa Clara, California, in 1974[42] and operates in Europe, Japan, Canada, the United States, Israel, China, Italy, India, Korea, Southeast Asia, Singapore and Taiwan.[43]

## Management

* Chairman of the Board of Directors: Thomas J. Iannotti[44]
* President and chief executive officer: Gary E. Dickerson[45]
* Chief Financial Officer: Brice Hill[46]
* Chief Technology Officer: Omkaram Nalamasu[47]

## See also

* Lam Research
* CFD-ACE+ — computational fluid dynamics solver developed by Applied Materials

## References

1. ↑ "U.S. SEC: Applied Materials, Inc. Form 10-K". U.S. Securities and Exchange Commission. 12 December 2025. https://www.sec.gov/ix?doc=/Archives/edgar/data/0000006951/000162828025056742/amat-20251026.htm.
2. ↑ "Applied Materials Inc" . Bloomberg L.P. Retrieved 3 March 2016.
3. ↑ Team, Trefis. "Understanding Applied Materials' Business Model And Performance Across Segments" (in en). https://www.forbes.com/sites/greatspeculations/2019/08/30/understanding-applied-materials-business-model-and-performance-across-segments/.
4. ↑ Allen, Gregory C. (November 26, 2024). "The True Impact of Allied Export Controls on the U.S. and Chinese Semiconductor Manufacturing Equipment Industries". https://www.csis.org/analysis/true-impact-allied-export-controls-us-and-chinese-semiconductor-manufacturing-equipment.
5. ↑ Turner, Tyya N. (14 June 2005). Vault Guide to the Top Manufacturing Employers. Vault. p. 30. ISBN 978-1581313246. https://books.google.com/books?id=e6puQvy0Yf8C&pg=PA30. Retrieved 4 May 2016.
6. ↑ McCaffery, Richard (17 December 1999). "TMF Interview With Applied Materials Chairman and Chief Executive James Morgan". The Motley Fool. http://www.fool.com/foolaudio/transcripts/1999/stocktalk991222_amat.htm.
7. ↑ Wheelwright, Steven C. (2010). Managing New Product and Process Development: Text Cases. Simon and Schuster. p. 428. ISBN 9781451602319. https://books.google.com/books?id=awmav051w24C&pg=PA428. Retrieved 4 May 2016.
8. ↑ "U.S. chip firm constructs R&D center in Japan". ComputerWorld. 15 October 1984. https://books.google.com/books?id=1mW5f8lXoEYC&pg=PA119.
9. ↑ "Applied Materials expands presence in China". Solid State Technology. 18 October 2001. http://electroiq.com/blog/2001/10/applied-materials-expands-presence-in-china/.
10. ↑ 10.0 10.1 Tsai, Terence; Cheng, Borshiuan (1 January 2006). The Silicon Dragon: High-tech Industry in Taiwan. Edward Elgar Publishing. p. 116. ISBN 1840642408. https://books.google.com/books?id=xBNEaMFMPsMC&pg=PA116. Retrieved 16 April 2016.
11. ↑ "Scientologizing". Forbes: p. 25. September 14, 1992.
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. http://www.globes.co.il/serveen/globes/docview.asp?did=352491.
13. ↑ "Applied Materials buys Etec - Jan. 12, 2000". https://money.cnn.com/2000/01/12/deals/appliedetec/.
14. ↑ "Applied Materials, Inc. Inc August 2001 Quarterly Report, Form 10-Q, Filing Date August 24, 2001". secdatabase.com. http://pdf.secdatabase.com/767/0000006951-01-500008.pdf.
15. ↑ Pimentel, Benjamin (31 January 2008). "Applied Materials acquires Baccini of Italy". http://www.marketwatch.com/story/applied-materials-acquires-italys-baccini.
16. ↑ Lim, Louisa (16 December 2009). "The Green Rush Is On In China". NPR. https://www.npr.org/templates/story/story.php?storyId=121512377.
17. ↑ Bartash, Benjamin Pimentel, Jeffry. "Applied Materials to acquire Semitool for $364 million" (in en-US). MarketWatch. https://www.marketwatch.com/story/applied-materials-to-buy-semitool-for-364-millon-2009-11-17.
18. ↑ Nicholson, Chris V. (4 May 2011). "Applied Materials to Buy Varian". https://dealbook.nytimes.com/2011/05/04/applied-materials-to-buy-varian-for-5-billion/.
19. ↑ Pfanner, Michael J. de la Merced and Eric (24 September 2013). "U.S. Manufacturer of Chip-Making Equipment Buys Japanese Rival". https://dealbook.nytimes.com/2013/09/24/applied-materials-to-merge-with-tokyo-electron/.
20. ↑ Clark, Don (8 July 2014). "Applied Materials and Tokyo Electron Pick 'Eteris' For Post-Merger Name". Wall Street Journal. https://www.wsj.com/articles/applied-materials-and-tokyo-electron-pick-eteris-for-post-merger-name-1404781083.
21. ↑ "Applied Materials to Acquire Tokyo Electron". Wall Street Journal. 25 September 2013. https://www.wsj.com/amp/articles/tokyo-electron-applied-materials-agree-to-merge-1380020997.
22. ↑ Soble, Jonathan (27 April 2015). "Applied Materials and Tokyo Electron Call Off $10 Billion Merger". The New York Times. https://www.nytimes.com/2015/04/28/business/dealbook/makers-of-chip-gear-call-off-10-billion-merger.html.
23. ↑ "Applied Materials withdraws from solar ion implant and wafer sawing sectors". 19 August 2015. https://www.pv-tech.org/applied_materials_withdraws_from_solar_ion_implant_and_wafer_sawing_sectors/.
24. ↑ "The World's Most Admired Companies for 2018" (in en-US). http://fortune.com/worlds-most-admired-companies.
25. ↑ "Exclusive: Applied Materials to buy KKR's Kokusai Electric for $2.2bn". https://asia.nikkei.com/Business/Business-deals/Exclusive-Applied-Materials-to-buy-KKR-s-Kokusai-Electric-for-2.2bn.
26. ↑ "Applied Materials to Buy Kokusai from KKR for $2.2 Billion". Bloomberg.com. 2020-01-10. https://www.bloomberg.com/news/articles/2019-07-01/applied-materials-said-to-buy-kokusai-electric-for-2-3-billion.
27. ↑ Mehta, Chavi (29 March 2021). "Applied Materials terminates $2.2 billion deal for Japan's Kokusai Electric". Reuters. https://www.reuters.com/article/us-kokusai-m-a-applied-materials/applied-materials-terminates-2-2-billion-deal-for-japans-kokusai-electric-idUSKBN2BL1I4.
28. ↑ Freifeld, Karen (2023-11-17). "Applied Materials under US criminal probe for shipments to China's SMIC-sources" (in en). Reuters. https://www.reuters.com/technology/applied-materials-under-us-criminal-probe-shipments-chinas-smic-sources-2023-11-16/.
29. ↑ https://www.reuters.com/world/china/applied-materials-pay-252-million-resolve-illegal-chip-exports-us-says-2026-02-12/
30. ↑ "Applied Materials' shares sink on weak China demand, tariff uncertainty". August 15, 2025. https://www.reuters.com/world/china/applied-materials-shares-sink-weak-china-demand-tariff-uncertainty-2025-08-15/.
31. ↑ "Applied Materials Inc. - AnnualReports.com". https://www.annualreports.com/Company/applied-materials-inc.
32. ↑ 32.0 32.1 32.2 "Applied Materials Announces Record Results" (Press release). Applied Materials. 18 August 2016. Retrieved 19 October 2017.
33. ↑ Spencer, Malia (20 February 2014). "Why Intel, Applied Materials are banking on a Corvallis startup". Portland Business Journal. http://www.bizjournals.com/portland/morning_call/2014/02/why-corvallis-may-be-critical-to-the.html.
34. ↑ Shields, Anne (12 January 2015). "Overview of Applied Materials Silicon Systems segment". Market Realist. http://marketrealist.com/2015/01/overview-applied-materials-silicon-systems-segment/.
35. ↑ Pimentel, Benjamin; Bartash, Jeffry (17 November 2009). "Applied Materials to acquire Semitool for $364 million". MarketWatch. http://www.marketwatch.com/story/applied-materials-to-buy-semitool-for-364-millon-2009-11-17.
36. ↑ "Applied Materials to Buy Kokusai From KKR for $2.2 Billion" (in en-US). https://finance.yahoo.com/news/applied-materials-said-buy-kokusai-055450368.html.
37. ↑ ""AMAT's SunFab Modules Awarded IEC Certification." Renewable Energy World. January 16, 2009". 2009-01-16. http://www.renewableenergyworld.com/articles/2009/01/amats-sunfab-modules-awarded-iec-certification-54520.html.
38. ↑ Kanellos, Michael (21 July 2010). "Applied Materials Kills its SunFab Solar Business". Greenech Media. http://www.greentechmedia.com/articles/read/applied-materials-kills-its-sunfab-solar-business.
39. ↑ ""Applied Materials Acquires Solar Wafer Manufacturer." Renewable Energy World. June 27, 2007". 2007-06-27. http://www.renewableenergyworld.com/articles/2007/06/applied-materials-acquires-solar-wafer-manufacturer-49130.html.
40. ↑ ""Applied Materials to Accelerate Its Solar Roadmap with Acquisition of Baccini." Renewable Energy World. November 26, 2007". 2007-11-26. http://www.renewableenergyworld.com/articles/2007/11/applied-materials-to-accelerate-its-solar-roadmap-with-acquisition-of-baccini-50648.html.
41. ↑ "Applied tops VLSI's Top 10 PV manufacturing equipment suppliers for 2008 - Photovoltaics International". http://www.pv-tech.org/news/_a/applied_tops_vlsis_top_10_pv_manufacturing_equipment_suppliers_for_2008/.
42. ↑ "1967-1979: The Early Years - Applied Materials". http://www.appliedmaterials.com/company/about/history/early-years.
43. ↑ "10-K". https://www.sec.gov/Archives/edgar/data/6951/000000695115000034/amat10252015-10xkdoc.htm#s62D7400CD0905E1A936E4CFB781A1305.
44. ↑ "Applied Materials Names Thomas Iannotti as Chairman of the Board of Directors". Printed Electronics Now. 10 March 2017. http://www.printedelectronicsnow.com/contents/view_breaking-news/2017-03-10/applied-materials-names-thomas-iannotti-as-chairman-of-the-board-of-directors/46398.
45. ↑ "Leadership | Applied Materials". http://www.appliedmaterials.com/about/leadership.
46. ↑ "Applied Materials taps former Xilinx executive Brice Hill as CFO". Market Watch. March 7, 2022. https://www.marketwatch.com/story/applied-materials-taps-former-xilinx-executive-brice-hill-as-cfo-2022-03-07.
47. ↑ "Press Releases - Applied Materials". http://www.appliedmaterials.com/news/articles/applied-materials-appoints-omkaram-nalamasu-chief-technology-officer.

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See also
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Category:Semiconductor companies

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