APPLIED MATERIALS INC /DE (AMAT)

Applied Materials, Inc., incorporated in Delaware in 1967, is a global materials engineering company that provides manufacturing equipment, services, and software to the semiconductor, display, and related electronics industries, serving manufacturers of semiconductor chips, LCD/OLED displays, and other electronic devices. The company operates through three reportable segments. The Semiconductor Systems segment develops and sells a broad range of equipment for chip fabrication, covering processes such as epitaxy, ion implant, oxidation/nitridation, rapid thermal processing, physical and chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, selective processing, and metrology/inspection, serving both leading-edge and mature process technologies used by integrated device manufacturers and foundries worldwide.

The Applied Global Services (AGS) segment delivers integrated solutions to optimize equipment and factory performance, including spare parts, upgrades, technology-enabled services, fab consulting, supply chain assurance programs, subfab equipment, legacy 200mm equipment, and automation software, supporting over 49,000 installed systems across more than 170 global locations. The Display and Adjacent Markets segment provides equipment for manufacturing LCD and OLED displays and other display technologies used in TVs, monitors, laptops, tablets, and smartphones, including array testing, defect review, and CVD/PVD deposition systems, with CVD technology also applied to solar cell manufacturing; growth in this segment is tied to consumer demand for larger, higher-resolution, and flexible displays. As of October 30, 2022, total company backlog stood at $19.011 billion, up from $11.758 billion a year earlier, led by Semiconductor Systems at $12.691 billion (67% of total), followed by AGS at $5.643 billion (30%) and Display and Adjacent Markets at $581 million (3%); approximately 32% of backlog was not expected to be filled within 12 months, a figure anticipated to decline by about $989 million due to new export regulations issued in December 2022.

Applied operates a distributed manufacturing model with activities in China, Israel, Singapore, Taiwan, the U.S., and other Asian countries, relying on qualified vendors and, in some cases, single or limited suppliers for key parts, while emphasizing ethical labor practices and responsible sourcing. The company invests heavily in research, development, and engineering to deliver new materials engineering technologies ahead of market demand, with R&D operations based primarily in the U.S. and additional locations in China, Europe, India, Israel, Korea, Singapore, and Taiwan, and sells its products globally almost entirely through a direct sales force.