Second Quarter Fiscal 2024 Earnings Presentation
May 16, 2024
Applied Materials External
Forward-Looking Statements
This presentation contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologies, our business outlook for the third quarter of fiscal 2024 and beyond, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance.
Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic, political and industry conditions, including rising inflation and interest rates; the implementation and interpretation of export regulations and license requirements, and their impact on our ability to export products and provide services to customers and on our results of operations; global trade issues and changes in trade and export license policies; our ability to obtain licenses or authorizations on a timely basis, if at all; the effects of geopolitical turmoil or conflicts; consumer demand for electronic products; the demand for semiconductors; customers' technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; our ability to meet customer demand, and our suppliers' ability to meet our demand requirements; the concentrated nature of our customer base; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; the effects of regional or global health epidemics; acquisitions, investments and divestitures; changes in income tax laws; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable law, rules and regulations; and other risks and uncertainties described in our SEC filings, including our recent Forms 10-Q and 8-K. All forward-looking statements are based on management's current estimates, projections and assumptions, and we assume no obligation to update them.
2 | Applied Materials External
UPCOMING
Events
MAY 30
JUNE 6
JULY 9
Bernstein Strategic Decisions Conference
Bank of America Global Technology Conference
Applied Materials Technology Breakfast at SEMICON West
3 | Applied Materials External
Gary Dickerson
President and Chief Executive Officer
Applied Materials External
Overview
- Delivering near-term performance and well positioned for long-term growth
- Enabling global technology megatrends
- Accelerating key semiconductor inflections from R&D to high-volume manufacturing
- Generating more value in our service business
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Tectonic Shifts in Technology Are Built on Semiconductors
DATA CENTER AI | EDGE AI AND | ELECTRIC AND | GLOBAL ENERGY | |||
INTERNET OF THINGS | AUTONOMOUS VEHICLES | TRANSFORMATION | ||||
Advanced AI Chips Enabled by:
- Leading-edgelogic
- Compute memory (high-performance DRAM)
- High-BandwidthMemory (DRAM stacking)
- Advanced packaging to create a "system in a package"
Applied is #1 in materials engineering in each area
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Enabling Customer Roadmap Inflections: Gate-All-Around
Frontside
Wiring
Transistor
Backside Wiring
Applied has longstanding leadership
in transistors and wiring
TRANSISTORS
-
Shift from FinFET to Gate-All-Around (GAA) grows
Applied's transistor SAM from ~$6B to ~$7B* - On track for >50% SAM share
WIRING
- Introduction of Backside Power Delivery (BPD) grows Applied's wiring SAM from ~$6B to ~$7B*
- On track for >50% SAM share
Expect >$2.5B in Revenue from GAA Nodes in CY2024,
with Potential to More than Double in CY2025
- Per 100k wafer starts per month capacity. SAM = Served Addressable Market 7 | Applied Materials External
Enabling Customer Roadmap Inflections
DRAM
- #1 in DRAM materials engineering
- DRAM adopting our logic technologies in periphery I/O
- ~40% SAM share in DRAM patterning
- Co-optimizedhardmask solutions
HIGH-BANDWIDTH MEMORY
- #1 in HBM materials engineering
- Serve ~3/4 of materials engineering steps in HBM packaging
- Now expect HBM packaging revenue to grow ~6X in FY24 to >$600M
- Expect ~50% HBM SAM share
ADVANCED PACKAGING
- #1 in advanced packaging
- Industry's broadest advanced packaging portfolio
- Now expect to grow to ~$1.7B in FY24 with opportunity to double over several years
- Expect ~50% SAM share
HBM packaging revenue is a subset of Applied's Advanced Packaging revenue. Advanced Packaging revenue is included in Applied's DRAM, NAND and foundry/logic revenue.
8 | Applied Materials External
Applied Materials Technology Portfolio
Heterogeneous
Materials Engineering
Create and deposit
Epitaxy Metal Dielectric
deposition deposition
Shape and remove
EtchPlanarization
Modify
ImplantThermal
Process Control
Analyze
Optical inspection | Defect review |
PlatingALD Selective deposition
Selective removal | Pattern shaping |
Treatments
eBeam metrology | CD-SEM |
and inspection | |
Integration
Digital lithography
Panel-level PVD
Connect
Hybrid bonding
eBeam Test
Learn more: "How do you make a chip" video
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Translating R&D Investments to Outperformance
- Applied outperformed WFE in each of past 5 years
- Materials engineering ~1/2 of WFE market; Applied is #1 in materials engineering
- Expect materials engineering to become a larger portion of WFE over time
- Applied expects to outgrow the WFE market through materials engineering leadership
Applied Materials Share of WFE
21.7% | 22.0% | 21.6% | ||
20.6% | ||||
19.5% | 19.9% | |||
21.2% | ||||
18.2% | 20.0% | 20.5% | ||
19.6% | 19.3% | |||
15.9%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Gartner (2011-19), TechInsights (2020-23), Applied Materials analysis.
Baseline year of 2011 is when Applied Materials acquired Varian Semiconductor Equipment Associates, Inc.
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Disclaimer
Applied Materials Inc. published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 21:03:37 UTC.