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Applied Materials, Inc. is a global leader in materials engineering solutions, providing manufacturing equipment, services, and software to the semiconductor, display, and related industries . The company operates through a direct sales force, with operations and manufacturing activities in the United States, Europe, Israel, and Asia . Applied Materials' offerings are highly technical, catering to the needs of semiconductor systems, global services, and display markets .
- Semiconductor Systems - Focuses on manufacturing equipment for foundry-logic, implant, packaging, metal deposition, and chemical vapor deposition (CVD), significantly contributing to the company's revenue .
- Applied Global Services - Provides long-term subscription service agreements, accounting for a substantial portion of parts and service revenues .
- Display and Adjacent Markets - Offers solutions for the display industry, maintaining profitability even during industry down cycles .
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Brice Hill Executive | Senior Vice President and Chief Financial Officer | None | Brice Hill joined AMAT in March 2022 as CFO, overseeing financial statements and compliance. Previously, he was CFO at Xilinx and held various finance roles at Intel. | View Report → |
Gary E. Dickerson Executive | President and Chief Executive Officer | Board member of the U.S.-China Business Council | Gary E. Dickerson has been the CEO since September 2013, leading AMAT to become a leading semiconductor and display equipment company. He joined AMAT in 2012 as President. | View Report → |
Omkaram Nalamasu Executive | Senior Vice President, Chief Technology Officer | None | Omkaram Nalamasu joined AMAT in 2006 and has been CTO since 2013. He also leads Applied Ventures, focusing on strategic investments. | |
Prabu Raja Executive | President, Semiconductor Products Group | None | Prabu Raja has been with AMAT since 1995 and became President of the Semiconductor Products Group in March 2023. He has held various senior roles in product development and operations. | |
Teri Little Executive | Senior Vice President, Chief Legal Officer, and Corporate Secretary | None | Teri Little joined AMAT in June 2020, overseeing legal, compliance, and corporate governance. She previously held senior roles at KLA Corporation. | |
Timothy M. Deane Executive | Group Vice President, Applied Global Services | None | Timothy M. Deane has been with AMAT since 1995 and became Group Vice President in September 2022, having held various senior management roles. | |
Aart J. de Geus Board | Director | Executive Chair of Synopsys, Inc., Board Member of Global Semiconductor Alliance | Aart J. de Geus has been a director since 2007, bringing leadership experience from Synopsys, Inc., where he is Executive Chair. | |
Alexander A. Karsner Board | Director | Senior Strategist at X, Executive Chairman of Manifest Energy Inc., Board Member of Conservation International | Alexander A. Karsner has been a director since 2008, with expertise in technology innovation and sustainability. He holds several external roles, including at Alphabet's X. | |
Judy Bruner Board | Director | Director at Qorvo, Inc., Rapid7, Inc., Seagate Technology plc | Judy Bruner has been a director since 2016, with a background in financial management and strategy from her time as CFO at SanDisk. | |
Kevin P. March Board | Director | Board Member of United Way Foundation of Metropolitan Dallas | Kevin P. March joined the board in 2022, with over 30 years of finance experience from his time as CFO at Texas Instruments. | |
Rani Borkar Board | Director | Corporate VP at Microsoft, Board Member of Global Semiconductor Alliance | Rani Borkar joined AMAT's board in 2020, bringing over 30 years of experience in technology strategy and operations. She is also a Corporate VP at Microsoft. | |
Scott A. McGregor Board | Director | Board Member at Equifax, Inc. | Scott A. McGregor has been a director since 2018, with a background in semiconductor leadership from his time as CEO of Broadcom. | |
Thomas J. Iannotti Board | Chairman of the Board | Director at Rigetti Computing, Inc. | Thomas J. Iannotti has been Chairman since 2005, with extensive experience in service management and technology offerings. | |
Xun (Eric) Chen Board | Director | Executive Chairman at ParityBit Technologies, Inc. | Xun (Eric) Chen has been a director since 2015, with expertise in technology strategy and innovation. He is also Executive Chairman at ParityBit Technologies. | |
Yvonne McGill Board | Director | CFO of Dell Technologies Inc. | Yvonne McGill has been a director since 2019, with extensive financial expertise from her role as CFO at Dell Technologies. |
- With your advanced node revenue expected to double, how much of this growth is truly incremental versus replacing revenue from prior nodes, and how do you assess the sustainability of this growth moving forward?
- Considering that approximately 30% of your revenue comes from China, primarily in the ICAPS business, do you expect this level to hold given potential geopolitical risks and how might changes in trade policies impact your outlook?
- Despite the strong growth in your services business, operating margins remain below prior targets; what structural challenges are preventing margins from returning to the low 30% range, and what actions are you taking to improve profitability?
- You noted an increase in gross margins due to favorable product mix and value-based pricing; can you provide more detail on the drivers behind this improvement and discuss the sustainability of higher gross margins in the current market environment?
- As you see customers adding DRAM capacity, particularly for high-bandwidth memory, how are you managing the potential risk of overcapacity in conventional DRAM, and what strategies are in place to balance investment and demand?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Samsung Electronics Co., Ltd. | Purchases equipment & services across multiple segments | All | Contributed 12% of net revenue in fiscal 2024, 15% in fiscal 2023, and 12% in fiscal 2022 |
TSMC | Purchases equipment & services across multiple segments | All | Contributed 11% of net revenue in fiscal 2024, 19% in fiscal 2023, and 20% in fiscal 2022 |
Intel Corporation | Purchases equipment & services across multiple segments | All | Contributed 10% of net revenue in fiscal 2022, and less than 10% in both fiscal 2023 and fiscal 2024 |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Acquired Company | 2025 | Goodwill increased during Q1 fiscal 2025 as a result of preliminary purchase accounting for the acquisition, although the impact was not material to operations or the balance sheet. |
Acquired Company | 2023 | During fiscal 2023, goodwill increased due to preliminary accounting for acquisitions that were not material to Applied Materials’ operational or balance sheet results. |
Acquired Company | 2022 | In fiscal 2022, acquisitions led to an increase in goodwill by $221 million and indefinite-lived intangible assets by $17 million, with no material impact on the company’s results of operations. |
Recent press releases and 8-K filings for AMAT.
- Strategic investment: Applied Materials purchased 9% of BE Semiconductor Industries’ outstanding shares, building upon a four-year collaboration on hybrid bonding technology.
- Technology focus: The investment supports the development of integrated equipment solutions for advanced semiconductor packaging that improves chip density, performance, and power efficiency.
- Transaction details: The acquisition was executed through market-based transactions without regulatory approval requirements or plans for board representation.
- Applied Materials emphasized its long-term secular growth strategy, noting a history of growth in semiconductor equipment investments despite cyclical challenges.
- The company detailed innovations in gate-all-around transistors and backside power distribution that are expected to add approximately $2 billion in new addressable market opportunities.
- Discussion also covered strong trends in advanced packaging and memory production, with high-bandwidth memory (HBM) production growing at about 30% CAGR.
- Strategic capital allocation was highlighted, with plans to return excess free cash flow to shareholders and investments in new projects such as the EPIC lab infrastructure for enhanced R&D collaboration.