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Company Profile - Applied Materials

3050 Bowers Ave.
Santa Clara, CA 95054-3299

Phone: 408-727-5555
Fax: 408-748-9943
Website: www.appliedmaterials.com
Ticker Symbol: AMAT

Key Facts

Largest manufacturer of wafer fabrication equipment in the world.
Has suffered from the worldwide drop in semiconductor business, but remains at the forefront of technological development in semiconductor manufacturing.
Not surprisingly, Applied Materials's biggest customer is the world's largest semiconductor manufacturer, Intel.
Key Financial Facts
2002 revenue: $5,062 million
1-yr. growth rate: -31 percent

Personnel Highlights
Number of employees: 16,077
1-yr. growth rate: -7 percent

Company Overview
Applied Materials is one of the leading semiconductor equipment manufacturers in the world. The Santa Clara-based company provides all of the equipment and support services for major processes used in semiconductors. Those include wafer fabrication systems and services, ion implantation, dry etch, chemical vapor deposition, and physical vapor deposition. Major clients include Intel, Motorola, and Advanced Micro Devices.

The company is also a partner in the joint venture Applied Komatsu Technology Inc., which makes thin-film transistor fabrication systems for flat panel displays. Sales in the Asia-Pacific region provide about 55 percent of the company’s revenue. In 2002, it opened a major facility and technical training center in Shanghai, China, to help target revenue growth in that region.

After a banner year for revenue and employee growth in 2000, Applied Materials suffered substantial losses throughout 2001 as the semiconductor industry worldwide contracted by an estimated 30 percent. The company has been reducing its work force and consolidating facilities ever since. In March 2003, the company announced an additional round of layoffs, reducing its workforce by about 14 percent—approximately 2,000 jobs, 1,400 of which are located in North America. Applied also plans to consolidate its Santa Clara, California, and Austin, Texas facilities, as well as some located outside the U.S.

On the upside, Applied Materials is at the forefront of new technology developments in chip manufacturing, particularly the industry’s transition to using copper circuitry.

Major Line of Business : Semiconductors

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