Abstract
APPLIED MATERIALS: COMPETING FOR WORLD DOMINANCE
If you're competing with Applied Materials, you should read this report. If
your not competing with Applied Materials, think again, and read this report.
Applied Materials' aggressive stance in the equipment industry means that no
company is safe.
Applied Materials' product strategies are based on a sixfold focus:
1. Providing solutions to users' problems. Applied Materials' product
technology is based on identifying and solving users' problems more so than
offering the latest technology. The company was well aware in the early 1980s
of the vacuum problems and related costs associated with the single
chamber-batch process technology that was used by the entire industry. Applied
Materials decided as early as in 1985 to switch to the single wafer,
multi-chamber technology (SWMC) -- technology that solved the vacuum problems.
In 1987 the company commercialized its first SWMC equipment. Applied Materials
is also continually improving its products rather than discontinuing a line
and replacing it with another line.
2. Developing and keeping core technology in-house. Applied Materials'
core technology consists of deposition, etching, ion implantation, thermal
processing, and CMP. The technology is developed, designed, and manufactured
internally rather than bought through acquisitions. Only metrology and
inspection became a core technology through acquisition
3. Process integration. This is Applied Materials' major strength, as
the company is providing process sequence integration through clustering. In
this method several different process chambers are capable of operating in
concert on the same platform. This in turn, enhances productivity and
minimizes the customers' capital investments.
4. Reducing the cost of ownership. In addition to process integration
strategy, Applied Materials' focused planning, designing, and manufacturing
operation led to the strategy of developing internally only three platforms --
the Precision, Endura, and Centura -- to provide its customers with system
flexibility, minimum capital investment, and minimum cost of operation. A new
product is not commercialized unless the company can prove a substantial
reduction in cost of ownership. The company also continually improves its
products to reduce training period and maintenance, and thus further reduces
the cost of ownership.
5. Providing superior infrastructure. The infrastructure that supports
the company's production and sales is able to respond very quickly to the
market and customer needs.
6. Investing carefully in non-core products. Although the company never
acquired a product line through acquisition, it did acquire metrology
capabilities with the acquisition of Orbot and Opal. Applied Materials, which
is successfully managing $10.7 billion in sales in FY2001, is choosing very
few selected joint ventures/alliances, such as the 1993 joint venture with
Komatsu to develop equipment for flat panel displays.
This report discusses the current strategies of Applied Materials as it
competes for world dominance. Strategies of its competitors are also
analyzed. Markets are analyzed and projected, and market shares for Applied
Materials and its competitors are detailed
Table of Contents
Chapter 1 - Introduction
Chapter 2 - Applied's Strategies
- 2.1. Market Strategies
- 2.1.1. Driving Demand for Processing Equipment
- 2.1.2. A Global Presence
- 2.1.3. Meeting Customer Needs
- 2.1.4. New CEO - New Strategy
- 2.2. Business Strategies
- 2.2.1. Silicon Systems Group
- 2.2.2. Applied Global Services
- 2.2.3. Display
- 2.2.4. Energy and Environmental Solutions
- 2.3. Technology Strategies
- 2.4. Product Strategies
- 2.4.1. Platforms
- 2.4.2. Etch
- 2.4.3. Deposition
- 2.4.4. RTP
- 2.4.5. CMP
- 2.4.6. Metrology and Inspection
- 2.4.7. Lithography
- 2.4.8. Copper Products
- 2.4.9. Wet Clean
- 2.5. Acquisition Strategies
- 2.6. Legal Strategies
- 2.7. Financial Analysis
Chapter 3 - Market Forecast
- 3.1. Market Drivers
- 3.1.1. Semiconductor Market
- 3.1.2. Technical Trends
- 3.1.3. Economic Trends
- 3.2. Applied Materials - Global Market Leader
- 3.3. Market Size and Market Shares
- 3.3.1. Chemical Vapor Deposition
- 3.3.2. Physical Vapor Deposition
- 3.3.3. Dry Etch
- 3.3.4. Rapid Thermal Processing
- 3.3.5. Silicon Epitaxy
- 3.3.6. Chemical Mechanical Planarization
- 3.3.7. Metrology and Inspection
Chapter 4 - Competitive Environment
- 4.1. Introduction
- 4.2. Lam Research
- 4.2.1. Strategies
- 4.2.2. Products
- 4.2.3. Financial Analysis
- 4.3. Novellus Systems
- 4.3.1. Strategies
- 4.3.2. Products
- 4.3.3. Financial Analysis
- 4.4. Tokyo Electron Limited
- 4.4.1. Strategies
- 4.4.2. Products
- 4.4.3. Financial Analysis
- 4.5. KLA-Tencor
- 4.5.1. Strategies
- 4.5.2. Products
- 4.5.3. Financial Analysis
- 4.6. Mattson Technology
- 4.6.1. Strategies
- 4.6.2. Products
- 4.6.3. Financial Analysis
- 4.7. ASM International
- 4.7.1. Strategies
- 4.7.2. Products
- 4.7.3. Financial Analysis
LIST OF TABLES
- 3.1. Worldwide Capital Spending 2007 - Present
- 3.2. Top Semiconductor Equipment Revenues 1979- Present
- 3.3. Worldwide CVD Market Forecast
- 3.4. Worldwide CVD Market Shares 1994- Present
- 3.5. Worldwide PVD Market Forecast
- 3.6. Worldwide PVD Market Shares 1994- Present
- 3.7. Worldwide Dry Etch Market Forecast
- 3.8. Worldwide Dry Etch Market Shares 1994- Present
- 3.9. Worldwide RTP Market Forecast
- 3.10. Worldwide RTP Market Shares 1994- Present
- 3.11. Worldwide Silicon Epitaxy Market Forecast
- 3.12. Worldwide Silicon Epitaxy Market Shares 1994- Present
- 3.13. Worldwide CMP Market Forecast
- 3.14. Worldwide CMP Market Shares 1996- Present
- 3.15. Worldwide M&I Market Forecast
- 3.16. Worldwide M&I Market Shares 1996- Present
LIST OF FIGURES
- 3.1. Worldwide CVD Market Shares
- 3.2. Worldwide PVD Market Shares
- 3.3. Worldwide Dry Etch Market Shares
- 3.4. Worldwide RTP Market Shares
- 3.5. Worldwide Silicon Epitaxy Market Shares
- 3.6. Worldwide CMP Market Shares
- 3.7. Worldwide M&I Market Shares
