Applied Materials, Inc. is a leading provider of materials engineering solutions used in the production of semiconductors and advanced displays. The company designs, develops, manufactures, and services wafer fabrication and display fabrication equipment. Its products are used in various applications, including personal computing, mobile phones, AI and data center servers, automobiles, and consumer electronics. Applied Materials operates through three segments: Semiconductor Systems, Applied Global Services (AGS), and Display. Semiconductor Systems offers a wide range of equipment for chip making, including patterning, transistor and interconnect fabrication, metrology, inspection, and packaging technologies. AGS provides services, spares, and factory automation software to optimize the performance of the installed base of equipment. Display focuses on manufacturing equipment for LCDs, OLEDs, and other display technologies.

• Employees: 35,700 (as of October 27, 2024)
• Geographic Footprint: 24 countries
• Headquarters: Santa Clara, California
• Founded: 1967
• Number of locations/facilities: Not specified
• Revenue: $27.176 billion (FY2024)
• Market Capitalization: $167.93 billion (as of April 28, 2024)
• Key Subsidiaries/Brands: Applied Global Services (AGS)

• CEO: Gary E. Dickerson
• CFO: Brice Hill
• Board Chair: Thomas J. Iannotti
• Other Key Executives: Prabu Raja (President, Semiconductor Products Group), Teri Little (Senior Vice President, Chief Legal Officer and Corporate Secretary), Omkaram Nalamasu (Senior Vice President, Chief Technology Officer), Timothy M. Deane (Group Vice President, Applied Global Services)

• Annual Revenue: $27.2 billion (FY2024)
• Net Income: $7.2 billion (FY2024)
• Market Cap: $167.9 billion (as of April 28, 2024)
• Total Assets: $34.4 billion (FY2024)
• Number of employees: 35,700 (as of October 27, 2024)
• Key Financial Highlights (FY2024): Revenue increased by 2% YoY, driven by growth in semiconductor and display segments. Gross margin improved due to lower costs and favorable product mix. Operating income increased slightly.

Applied Materials offers a broad portfolio of products and services across its three segments:

• Semiconductor Systems: Provides equipment for various chip making processes, including patterning, transistor and interconnect fabrication, metrology, inspection, and advanced packaging.
• Applied Global Services (AGS): Offers services, spares, and factory automation software to optimize equipment performance and productivity for semiconductor, display, and other equipment.
• Display: Provides equipment for manufacturing LCDs, OLEDs, and other display technologies for various applications.

Applied Materials operates through three reportable segments:

• Semiconductor Systems: 73% of FY2024 revenue
• Applied Global Services (AGS): 23% of FY2024 revenue
• Display: 3% of FY2024 revenue

Applied Materials' strategic priorities include developing innovative products to address customer challenges at technology inflections, expanding market opportunities in semiconductor and display industries, and growing its service business. The company's long-term growth strategy involves continuous development of new materials engineering solutions and expansion into new and adjacent markets. Applied Materials invests significantly in R&D to deliver new products and technologies ahead of strong demand, enabling customers to incorporate them into their manufacturing plans.

Applied Materials operates in the highly competitive semiconductor and display equipment industry. The company faces competition from both small regional players and large global companies. Key market trends affecting the business include rapid technological change, cyclical demand, and increasing complexity of semiconductor and display manufacturing. The growth of AI, IoT, and other data-intensive applications is driving demand for advanced semiconductors and displays.

• Cyclical Demand and Volatility: The semiconductor and display industries are cyclical and subject to fluctuations in demand, impacting the company's revenue and profitability.
• Global Economic Uncertainty: Adverse global economic conditions can negatively impact customer spending and demand for the company's products and services.
• Geopolitical Risks: Operating in multiple countries exposes the company to geopolitical risks, including trade restrictions, political instability, and supply chain disruptions.
• Concentrated Customer Base: A relatively small number of customers account for a significant portion of the company's revenue, increasing its dependence on these customers.
• Supply Chain Disruptions: Disruptions in the supply chain, including shortages of parts and materials, can affect the company's ability to meet customer demand and impact its financial results.