Applied Materials
A leading global supplier of equipment, software, and services used to manufacture semiconductor chips, displays, and related advanced materials products.
Last updated August 21, 2026
AI crawler reads
No AI crawler has read this profile since Oct 28, 2026.
Overview
Applied Materials is a United States-based industrial technology company that supplies equipment, software, process solutions, and lifecycle services used in the manufacture of semiconductor integrated circuits, flat-panel displays, and selected adjacent products. Its headquarters are in Santa Clara, California, and its operations extend across the principal semiconductor and display manufacturing regions of North America, Europe, and Asia. The company’s core role is to help manufacturers build and control microscopic structures on wafers and other substrates. Its semiconductor portfolio covers processes such as atomic layer deposition, chemical vapor deposition, physical vapor deposition, etch, ion implantation, rapid thermal processing, chemical mechanical polishing, wafer inspection, and metrology. These technologies are used in the production of logic processors, memory devices, power semiconductors, and other integrated circuits. Applied Materials also provides process-control systems that measure films, dimensions, defects, and other characteristics during production, allowing chipmakers to improve yield and maintain consistency as device geometries become more complex. Applied Global Services supports the installed equipment base through installation assistance, warranty and maintenance programs, spare parts, refurbishing, upgrades, enhancements, automation software, and other operational services. This creates a recurring service component alongside the company’s sales of highly specialized capital equipment. Its Display and Adjacent Markets activities serve manufacturers of flat-panel displays and other products requiring sophisticated coating and materials-processing systems. The company has also developed or acquired technologies for coatings used in flexible electronics, packaging, and related applications. Applied Materials was founded in 1967 by Michael A. McNeilly and other co-founders and became a public company in 1972. During the 1970s, James C. Morgan redirected the company toward semiconductor manufacturing equipment, helping establish the focus that shaped its later growth. The business expanded internationally, opened technology and service facilities in Japan and China, and introduced equipment platforms that integrated multiple process chambers into a single manufacturing system. It subsequently broadened its capabilities through acquisitions in inspection, metrology, cleaning, wafer processing, solar manufacturing, and related technologies. The company’s history also includes strategic reversals. It entered solar and broader energy-related manufacturing equipment during the 2000s, but later exited or reduced several solar activities as market conditions and competitive dynamics changed. A proposed combination with Tokyo Electron was abandoned in 2015 after antitrust concerns. A planned acquisition of Kokusai Electric was terminated in 2021 after regulatory approval delays, particularly in China. Applied Materials operates in a highly technical and cyclical industry. Demand depends on semiconductor manufacturers’ capital expenditure, technology transitions, memory-market conditions, display investment, regional supply-chain policies, and export controls. The company is commonly described as one of the world’s largest semiconductor manufacturing-equipment suppliers, competing with companies such as ASML, Lam Research, and Tokyo Electron. Its business combines equipment innovation, process engineering, customer support, and long-term relationships with major chipmakers and display producers.
History
Applied Materials was founded in 1967 by Michael A. McNeilly and other co-founders. It entered the public markets in 1972 through NASDAQ. During its early years the company diversified across materials-processing opportunities, but the appointment of James C. Morgan as chief executive in 1976 brought a renewed emphasis on semiconductor manufacturing equipment. By 1978, the company reported sales growth of 17 percent, reflecting the increasing importance of specialized production tools in the expanding integrated-circuit industry. The company internationalized its technology and service network during the 1980s. In 1984, it became the first United States semiconductor-equipment manufacturer to establish its own technology center in Japan and the first semiconductor-equipment company to operate a service center in China, according to the cited historical account. In 1987, Applied Materials introduced the Precision 5000 chemical-vapor-deposition platform. Its multi-chamber design allowed several processes to be integrated into one system, an approach that differentiated it from many earlier production tools. The Precision 5000 was later placed in the Smithsonian Institution’s permanent Information Age technology collection in 1993. Applied Materials expanded into process control and inspection through acquisitions. In 1996, it purchased Israeli companies Opal Technologies and Orbot Instruments. Opal developed metrology systems for measuring critical dimensions, while Orbot supplied inspection systems for patterned silicon wafers and photomasks. The company acquired Etec Systems in 2000 and bought Oramir Semiconductor Equipment in 2001, adding laser-cleaning technology for semiconductor wafers. These transactions helped broaden the company beyond individual deposition tools into a wider set of wafer-fabrication and yield-enhancement processes. During the 2000s, Applied Materials entered display, solar, glass-coating, and web-coating markets. It acquired Applied Films in 2006 and organized solar, glass, and web activities within an Energy and Environmental Solutions sector. It also acquired HCT Shaping Systems in 2007 for wafer-sawing technology and Baccini in 2008 for solar-cell metallization equipment. In 2009, it opened a large Solar Technology Center in Xi’an, China. The company later withdrew from portions of the solar market, including thin-film photovoltaic production, solar wafer sawing, and solar ion implantation. Its SunFab thin-film business was closed in 2010, and the former energy and environmental sector was no longer separately reported after 2016. The semiconductor business continued to grow through acquisitions such as Semitool in 2009, which strengthened the company’s wafer-processing capabilities, and Varian Semiconductor, for which Applied Materials announced an acquisition in 2011. In 2013, Applied Materials announced a proposed merger with Tokyo Electron. The proposed company, which was to be called Eteris, would have created a major global semiconductor-equipment supplier, but the transaction was abandoned in 2015 because of antitrust concerns and fears that the combined company would have excessive influence over the industry. Applied Materials announced in 2019 that it intended to acquire Kokusai Electric from KKR for approximately $2.2 billion. The transaction was ultimately terminated in March 2021 after regulatory approval delays. In the 2020s, the company remained focused on semiconductor process equipment, process control, display manufacturing, and services while navigating semiconductor investment cycles, export controls, and geopolitical tensions. Reports in 2023 described a United States Department of Justice investigation into alleged routing of equipment to a Chinese semiconductor manufacturer through South Korea. The cited account says the matter resulted in a $252 million settlement in February 2026. The company’s current organization includes Semiconductor Products, Applied Global Services, and Display and Adjacent Markets, together with the Applied Ventures investment arm.
- 2021
Kokusai Electric transaction terminated
[1]The planned Kokusai Electric acquisition was terminated after regulatory approval delays.
- 2019
Kokusai Electric acquisition announced
[1]Applied Materials announced plans to acquire Kokusai Electric for approximately $2.2 billion.
- 2015
Tokyo Electron merger abandoned
[1]Applied Materials and Tokyo Electron ended their proposed merger after antitrust concerns prevented the transaction from proceeding.
- 2011
Varian Semiconductor acquisition announced
[1]The company announced the acquisition of Varian Semiconductor, strengthening its ion-implantation capabilities.
- 2009
Semitool acquired and Xi’an solar center opened
[1]Applied Materials acquired Semitool and opened a Solar Technology Center in Xi’an, China.
- 2006
Applied Films acquired
[1]The acquisition expanded Applied Materials into glass coating, web coating, and related display and solar applications.
- 2001
Oramir Semiconductor Equipment acquired
[1]The company acquired Oramir and its laser-cleaning technology for semiconductor wafers.
- 1996
Opal Technologies and Orbot Instruments acquired
[1]Applied Materials acquired Israeli metrology and inspection companies, expanding its process-control capabilities.
- 1993
Precision 5000 enters Smithsonian collection
[1]The Precision 5000 was added to the Smithsonian Institution’s permanent collection of Information Age technology.
- 1987
Precision 5000 introduced
[1]The company introduced a multi-chamber chemical-vapor-deposition platform integrating multiple processes in one system.
Products and positioning
A technology-intensive supplier of critical materials-engineering, wafer-fabrication, process-control, display-manufacturing, and equipment-service solutions for semiconductor and advanced electronics manufacturers.
Semiconductor manufacturing equipment
Semiconductor Products
Applied Materials’ Semiconductor Products portfolio covers equipment used throughout wafer fabrication. It includes atomic layer deposition, chemical vapor deposition, physical vapor deposition, etch, ion implantation, rapid thermal processing, chemical mechanical polishing, wafer inspection, and related process-control technologies. These tools help manufacturers deposit and remove materials, modify electrical properties, create microscopic structures, and measure production results for logic, memory, power, and other semiconductor devices.
Wafer-fabrication equipment
Deposition systems
Deposition systems place highly controlled layers of material on semiconductor wafers. Applied Materials supplies several deposition technologies, including atomic layer, chemical vapor, and physical vapor deposition. These processes are used to form films for transistors, interconnects, memory cells, barriers, conductors, and other structures. Their importance increases as device architectures become three-dimensional and require increasingly precise materials engineering.
Wafer-fabrication equipment
Etch systems
Etch equipment selectively removes material from a wafer to transfer patterns and create the structures required by integrated circuits. The systems support plasma and other controlled removal processes used in advanced logic, memory, and specialty semiconductor production. Etch performance affects feature dimensions, profile control, uniformity, and yield, making it a central part of modern semiconductor process integration.
Semiconductor process equipment
Ion implantation systems
Ion implantation systems introduce selected dopant ions into semiconductor material to change the electrical characteristics of defined regions. The process is used to create and tune transistor source, drain, and other functional areas. Applied Materials expanded this capability through its acquisition of Varian Semiconductor, adding implantation technologies to its broader wafer-fabrication equipment portfolio.
Semiconductor process control
Process control, inspection, and metrology
Process-control products measure films, critical dimensions, surface characteristics, defects, and other manufacturing variables. They help chipmakers detect problems, adjust processes, improve yield, and maintain uniformity across wafers and production lots. The portfolio was strengthened through acquisitions including Opal Technologies and Orbot Instruments, which contributed metrology and patterned-wafer and mask-inspection capabilities.
Industrial equipment services
Applied Global Services
Applied Global Services supports customers after equipment installation. Its activities include installation assistance, warranty and maintenance support, spare parts, refurbished equipment, upgrades, enhancements, automation software, and other lifecycle services. The group helps manufacturers extend equipment productivity and adapt installed systems to changing process requirements, while providing Applied Materials with an ongoing relationship with the equipment base.
Display manufacturing equipment
Display and Adjacent Markets systems
Display and adjacent-markets systems serve manufacturers of flat-panel displays and other products that require large-area materials processing and coatings. Display production uses several techniques related to semiconductor manufacturing, including photolithography, chemical and physical vapor deposition, and testing. The business addresses applications in displays for computers, smartphones, televisions, and other electronic products.
Solar manufacturing equipment · 2007
SunFab thin-film photovoltaic line
SunFab was Applied Materials’ thin-film photovoltaic manufacturing line, designed to deposit silicon thin films on glass substrates for solar-module production. The line supported single- and tandem-junction configurations and received International Electrotechnical Commission certification in 2009. Applied Materials subsequently exited the thin-film solar market and closed the SunFab business.
Controversies
2026
Reported settlement over export-control allegations
The cited account states that Applied Materials settled the Department of Justice matter and paid a $252 million penalty, described there as the largest settlement of its kind at that time.
2023
Reported Department of Justice investigation over China shipments
Reports described a criminal investigation by the United States Department of Justice into whether Applied Materials routed semiconductor equipment to Semiconductor Manufacturing International Corporation through South Korea in violation of United States sanctions and export controls.
1992
Employment-related lawsuit involving Applied Scholastics courses
Applied Materials settled a lawsuit brought by three former employees who alleged that they had been forced out after raising concerns about courses taught by Applied Scholastics. The cited account reported an estimated settlement of approximately $600,000.
Marketing campaigns
- 2009Solar Technology Center
China · Solar manufacturing
Applied Materials opened a large commercial solar-energy research and development facility in Xi’an, China, to support its solar manufacturing-equipment activities and customer development efforts.
Outcome. The company later reduced and exited several solar-equipment activities.
Brand decisions
2019
Planned acquisition of Kokusai ElectricM&ABackground
Applied Materials sought to expand its semiconductor-equipment portfolio through the purchase of Kokusai Electric from KKR.
Action taken
It announced an agreement valued at approximately $2.2 billion.
Aftermath
The transaction was terminated in 2021 because regulatory approval was delayed, including approval from China’s regulator.
Announced transaction value. $2.2 billion (2019 announced acquisition)
2013
Proposed merger with Tokyo ElectronM&ABackground
Applied Materials sought to combine with Tokyo Electron to create a larger global semiconductor-processing-equipment supplier.
Action taken
The companies announced a planned merger under the proposed name Eteris.
Aftermath
The transaction was abandoned in 2015 after antitrust concerns and regulatory opposition.
Proposed combined market value. (2013 proposal)
2010
Exit from thin-film solar manufacturingStrategyBackground
Applied Materials’ thin-film photovoltaic activities faced changing market conditions and competitive pressures.
Action taken
The company announced that it was abandoning the thin-film market and closing its SunFab division.
Aftermath
Solar activities were subsequently reduced, with some remaining operations reported within corporate and other activities.
2006
Expansion into solar and energy-related manufacturing equipmentStrategyBackground
Applied Materials sought to diversify beyond semiconductor equipment as demand grew for solar cells, coated glass, and flexible or web-based electronic materials.
Action taken
It acquired Applied Films, entered solar manufacturing equipment, and organized solar, glass, and web activities in an Energy and Environmental Solutions sector.
Aftermath
The company later abandoned thin-film solar production equipment and no longer reported the former sector separately after 2016.
Recent events
Applied Materials launches EPIC Center in Sunnyvale, California with $5 billion initial investment[3]
Reported:
Applied Materials launched its Equipment and Process Innovation and Commercialisation (EPIC) Center in Sunnyvale, California with an initial $5 billion capital investment. The 600,000-square-foot facility, featuring nearly four acres of advanced cleanroom space, opens with a founding roster of semiconductor majors including TSMC, Intel, SK Hynix, Micron and Samsung Electronics, alongside innovation partners Broadcom, Advantest, SCREEN, KIOXIA and Besi, and is designed to bring together chipmakers, systems companies, equipment vendors and university researchers to accelerate semiconductor process technology and equipment R&D.
Applied Materials Appoints Qualcomm COO Akash Palkhiwala to Board of Directors[4]
Reported:
Applied Materials announced it has appointed Akash Palkhiwala, COO of Qualcomm Incorporated, to its board of directors, and he was also named a member of the board's audit committee.
- Unconfirmed
Italy vetoes acquisition of Applied Materials’ Italian screen-printing equipment business[5]
Reported:
The Italian government used its “Golden Power” law to veto Zhejiang Keesong Intelligent Equipment’s proposed acquisition of Applied Materials’ screen-printing equipment business in Italy, citing possible effects on Italy’s strategically important semiconductor industry.
Applied Materials abandons Kokusai Electric acquisition[6]
Reported:
Applied Materials announced that it was abandoning its planned $3.5 billion acquisition of Kokusai Electric because Chinese regulators had not approved it, and would pay KKR a $154 million contract termination fee.
STMicroelectronics launches the LaSAR Alliance[7]
Reported:
STMicroelectronics announced the launch of the LaSAR Alliance, an ecosystem of technology developers, suppliers and manufacturers collaborating to develop and accelerate augmented-reality smart-glass solutions. Founding members include Applied Materials, Dispelix, Mega1 and Osram.
Applied Materials introduces Centris Sym3 Y etch system[8]
Reported:
Applied Materials announced the Centris Sym3 Y, a new conductor etch system for patterning advanced memory and logic chips. The article says the system was already being used by multiple leading customers worldwide.
Sources9 sources
- 1Applied Materialsen.wikipedia.org
- 2Applied Materials official websiteappliedmaterials.com
- 3应用材料公司在加州森尼韦尔启用EPIC中心，初始投资50亿美元telecom.economictimes.indiatimes.com
- 4应用材料任命高通营运长Akash Palkhiwala加入董事会n.yam.com
- 5意大利否决收购应用材料意大利丝网印刷设备业务epochtimes.com
- 6应用材料放弃收购Kokusai Electricnews.cnyes.com
- 7意法半导体发起LaSAR联盟finance.yahoo.com
- 8应用材料推出 Centris Sym3 Y 蚀刻系统technuter.com
- 9应用材料公司推出用于先进存储器和逻辑芯片的新型刻蚀系统Sym3tech.sina.com.cn
Cite this profile: Cite the canonical profile. /brand-wiki/applied-materials · Editorial policy · How profiles are compiled