Thomas Alsop
Research expert covering the global hardware industry
Applied Materials - statistics & facts
The chips that power our digital lives rely on a complex network of design and manufacturing expertise. A key part of the process are semiconductor equipment specialists, providers of cutting-edge machines that help to build the advanced semiconductors now required in everything from smartphones to self-driving cars. As a leader in materials engineering solutions, Applied Materials supplies the technology that is helping to craft the next generation of semiconductors, chips that will unlock the potential of artificial intelligence (AI) across multiple industries.
Meeting the demands of the semiconductor industry
The primary focus of Applied Materials is on the design and manufacturing of the systems used to fabricate semiconductor chips. The company’s in-depth understanding of the semiconductor supply chain, from materials through to end markets, enables it to meet the demands of chipmakers across the world. Counting the likes of Taiwan Semiconductor Manufacturing Company (TSMC), Intel, and Samsung as some of its key customers, Applied Materials’ machinery is being deployed across the foundry, logic, and memory segments of the market.A bumper year for the company in a competitive market
Benefiting from a broad product portfolio and strong relationships with its leading customers, Applied Materials achieved record revenue in 2023, generating 26.5 billion U.S. dollars in the year. Due to its successes, the company’s valuation has surged, now ranking among the leading semiconductor companies in terms of market capitalization. Applied Materials joins a leaderboard that features companies across the entire semiconductor value chain, including fellow semiconductor equipment suppliers. A notable name on that list, and one of the company’s competitors, is ASML.Applied Materials is looking to challenge
As a leading provider of lithography systems for the semiconductor industry, ASML also boasts TSMC, Intel, and Samsung as its key partners. These firms are readily acquiring ASML’s extreme ultraviolet (EUV) machines. EUV machines are regarded as the most advanced systems, capable of developing ever more powerful chips. In 2023, Applied Materials released new machinery that allows chipmakers to create chips with fewer EUV lithography steps. By providing significant cost savings and speeding up production for chipmakers, Applied Materials hopes to challenge ASML’s dominance in this part of the market.Innovation and collaboration will shape the future
Identifying market trends will be an important factor for the company as it seeks to provide the necessary solutions to chipmakers looking to meet semiconductor demand. Undoubtedly, the AI-era will dictate where the company channels its innovation, with the company looking to bring game-changing modern technology to market as fast as the technology develops itself. By building on relationships with key customers and partners across the semiconductor ecosystem, Applied Materials can be regarded as an essential figure within the technology landscape.
