Kokusai Electric (Termination & Strategic Investments)
2021
Outcome
Following regulatory expiration, redirected capital into organic internal development of advanced ALD and annealing platforms.
Applied Materials
Acquisitions
Applied Materials Acquisitions
3
Major Deals Covered
What are Applied Materials's biggest acquisitions?
This page covers 3 major deals from 2007 to 2021, each with its price where disclosed and the reason behind it.
- Major deals covered
- 3
- First deal
- 2007
- Most recent
- 2021
| Company | Year | Price | Purpose |
|---|---|---|---|
| Varian Semiconductor Equipment Associates | 2011 | Undisclosed | Acquired world leader in ion implantation equipment to integrate precision atomic dopant placement into Applied's tool portfolio. |
| Baccini | 2007 | Undisclosed | Acquired Italian manufacturer of automated metallization and cell handling systems for photovoltaic solar cells. |
| Kokusai Electric (Termination & Strategic Investments) | 2021 | Undisclosed | Attempted acquisition of Japanese batch thermal processing and atomic layer deposition specialist from KKR. |
- What companies has Applied Materials bought?
- Major acquisitions by Applied Materials documented here include Kokusai Electric (Termination & Strategic Investments) (2021), Varian Semiconductor Equipment Associates (2011) and Baccini (2007).
- What is Applied Materials's most recent acquisition?
- The most recent Applied Materials acquisition documented here is Kokusai Electric (Termination & Strategic Investments), in 2021.
Varian Semiconductor Equipment Associates
2011
Outcome
Gave Applied Materials commanding market leadership in semiconductor ion implantation across all global chip fabs.
Baccini
2007
Outcome
Expanded Applied's precision screen-printing and roll-to-roll manufacturing capabilities for green energy and packaging.
Applied Materials's Growth & Acquisition Strategy
Applied Materials's forward growth strategy centers on three extensive technology inflections: Gate-All-Around (GAA) nanosheets, Backside Power Delivery Networks (BSPDN), and heterogeneous 2.5D/3D advanced chiplet packaging. Backside Power Delivery—a revolutionary architecture moving electrical power wires from the top of the silicon die to the backside to free up surface area for transistors—is an enormous growth catalyst for Applied, requiring deep silicon via etching, chemical mechanical planarization (CMP), and wafer-to-wafer bonding where Applied holds dominant market share. In advanced packaging, Applied is expanding its Materials Engineering Technology Accelerator (META Center) and EPIC center, partnering directly with hyperscalers and foundries to co-develop custom silicon packaging architectures.
How Applied Materials Makes Money
Applied Materials generates revenue through the sale of capital-intensive semiconductor and display manufacturing systems and high-margin recurring global services. Semiconductor Systems accounts for approximately 73% of revenue, with advanced multi-chamber manufacturing platforms (such as the Endura PVD, Producer CVD, and Centura RTP systems) commanding multi-million-dollar average selling prices across advanced foundry/logic and memory fabrication lines. Applied Global Services (AGS) accounts for roughly 22% of revenue, generating highly profitable, recurring subscription-like revenue under comprehensive service agreements (Subscription Services) and parts supply contracts that maintain over 43,000 active tools. Display Systems accounts for the remaining 5%, supplying vacuum deposition tools for flat panel display makers.
Applied Materials Acquisitions FAQ
Does Applied Materials acquire other companies?
Yes, Applied Materials executes targeted acquisitions to integrate complementary technologies, expand intellectual property, and enter new market verticals.
What is Applied Materials's acquisition strategy?
Applied Materials focuses on bolt-on acquisitions that can be rapidly integrated into its core technology architecture and commercial distribution channels.
How does Applied Materials fund its acquisitions?
Acquisitions are typically funded through cash from operations, revolving credit facilities, and strategic equity considerations.
What was one of Applied Materials's notable acquisitions?
Applied Materials has acquired specialized technology assets that enhance its core platform capabilities and expand its addressable customer base.
How does Applied Materials handle post-merger integration?
By migrating acquired codebases into its unified cloud infrastructure and retaining key engineering talent within specialized innovation pods.
Are acquisitions a primary or secondary growth driver?
Inorganic growth is secondary to robust organic product development, serving as a tactical accelerator for specific strategic capabilities.
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