Key Stats
Revenue (FY2024): $27.18 billion
Market Cap: $183 billion (November 2025)
Employees: 35,700 worldwide
Headquarters: Santa Clara, California, USA
CEO: Gary Dickerson (since 2013)
Applied Materials ranks as the second-largest semiconductor equipment manufacturer in the world. The company supplies equipment, services, and software used to manufacture chips for electronics, displays, and solar products.
Founded in 1967 by Michael McNeilly and four partners, Applied Materials went public on NASDAQ in 1972. The company operates from 90 locations across 13 countries and holds more than 8,000 patents worldwide.
Applied Materials serves major chipmakers including Taiwan Semiconductor Manufacturing Company, Intel, and Samsung. The company invests approximately $3 billion annually in research and development to maintain its technology leadership.
Applied Materials History
1967
Michael McNeilly founded Applied Materials with four partners and a $7,500 loan from his father-in-law. The company focused on chemical vapor deposition systems for the semiconductor industry.
1972
Applied Materials went public on NASDAQ. The IPO provided capital for expansion as the semiconductor industry grew rapidly during this period.
1976
James C. Morgan became CEO and saved the company from bankruptcy. He refocused operations on core semiconductor manufacturing equipment, setting the stage for decades of growth.
1984
Applied Materials became the first U.S. semiconductor equipment manufacturer to open a technology center in Japan and the first to operate a service center in China.
1987
Applied Materials introduced the Precision 5000 CVD machine. This system incorporated multiple process chambers into a single platform and established the company as an industry leader.
1993
The Precision 5000 was inducted into the Smithsonian Institution’s permanent collection of Information Age technology, recognizing its importance to semiconductor manufacturing.
2011
Applied Materials acquired Varian Semiconductor for $4.9 billion. This purchase strengthened ion implantation capabilities essential for advanced chip manufacturing processes.
2024
Applied Materials reported record fiscal year 2024 results with $27.18 billion in revenue. The company marked its fifth consecutive year of growth driven by AI chip demand.
Applied Materials Co-founders
Michael A. McNeilly
Primary founder who started Applied Materials at age 28 with a $7,500 loan. McNeilly previously co-founded Apogee Chemicals and received the first SEMI award for contributions to the semiconductor industry.
John C. Gifford
Co-founder who joined from the semiconductor industry. Gifford contributed engineering expertise during the company’s early development of CVD equipment systems.
Frank J. Jaumin
Co-founder with background in semiconductor manufacturing processes. Jaumin helped develop the company’s initial product line for thin film deposition.
Dennis C. Leister
Co-founder who brought technical expertise to the founding team. Leister worked on early equipment designs that established Applied Materials in the market.
Robert H. Willquist
Co-founder who supported the company’s initial operations in Santa Clara. Willquist contributed to building the foundation for the company’s manufacturing capabilities.
Applied Materials Competitors
Applied Materials competes against global semiconductor equipment manufacturers in deposition, etch, and inspection markets. ASML leads in lithography equipment while Applied Materials maintains the broadest product portfolio across wafer fabrication processes.
| Company | Headquarters | Primary Focus |
|---|---|---|
| ASML | Veldhoven, Netherlands | EUV and DUV lithography systems |
| Lam Research | Fremont, California | Etch and deposition equipment |
| Tokyo Electron | Tokyo, Japan | Wafer fabrication equipment |
| KLA Corporation | Milpitas, California | Inspection and metrology systems |
| Teradyne | North Reading, Massachusetts | Automated test equipment |
| Screen Holdings | Kyoto, Japan | Wafer cleaning and processing |
| Hitachi High-Tech | Tokyo, Japan | Measurement and inspection |
| Advantest | Tokyo, Japan | Semiconductor testing equipment |
| Canon | Tokyo, Japan | Lithography and nanoimprint |
| Nikon | Tokyo, Japan | DUV lithography systems |
Applied Materials Revenue
Applied Materials achieved $27.18 billion in revenue during fiscal year 2024. The Semiconductor Systems segment generated $19.91 billion, representing the largest portion of total sales. Revenue has grown consistently over the past decade.
Applied Materials Market Cap
Applied Materials maintains a market capitalization of approximately $183 billion as of November 2025. The company ranks among the top 100 most valuable publicly traded companies globally. Stock performance reflects investor confidence in semiconductor equipment demand.
Applied Materials Acquisitions
Applied Materials has grown through strategic acquisitions that expanded its technology portfolio and market reach. The company targets businesses that strengthen capabilities in wafer fabrication, inspection, and processing equipment.
In 1996, Applied Materials acquired Israeli companies Opal Technologies and Orbot Instruments for a combined $285 million. Opal provided CD-SEM metrology systems while Orbot supplied wafer and mask inspection equipment. These purchases marked the company’s entry into the process control market.
The 2000 acquisition of Etec Systems for approximately $1.8 billion gave Applied Materials leadership in mask pattern generation. Etec’s technology writes semiconductor chip designs onto photomasks used in the manufacturing process. This deal expanded the company’s presence in lithography-related equipment.
Applied Materials purchased Baccini in 2008 to enter solar cell manufacturing equipment. The company opened the world’s largest commercial solar research facility in Xi’an, China the following year. Semitool joined the portfolio in 2009 for $364 million, enhancing wafer-level packaging capabilities.
The 2011 acquisition of Varian Semiconductor for $4.9 billion stands as one of the company’s largest deals. Varian’s ion implantation technology proved essential for advanced chip manufacturing at smaller process nodes. Gary Dickerson, then Varian’s CEO, later became Applied Materials CEO in 2013.
Applied Materials announced a merger with Tokyo Electron in 2013 that would have created the world’s largest semiconductor equipment company. Regulators blocked the deal in 2015 due to antitrust concerns. The company acquired Kokusai Electric in 2019 for $2.2 billion to strengthen batch processing capabilities for memory chips manufactured by companies like NXP Semiconductors and STMicroelectronics customers.
FAQs
Who founded Applied Materials?
Michael A. McNeilly founded Applied Materials on November 10, 1967, in Santa Clara, California, with four partners: John C. Gifford, Frank J. Jaumin, Dennis C. Leister, and Robert H. Willquist.
What does Applied Materials make?
Applied Materials manufactures semiconductor fabrication equipment including deposition, etch, ion implantation, and inspection systems. The company also produces display manufacturing equipment and provides related services.
Where is Applied Materials headquarters?
Applied Materials is headquartered in Santa Clara, California, in the heart of Silicon Valley. The company operates from 90 locations across 13 countries worldwide.
How many employees work at Applied Materials?
Applied Materials employs 35,700 people worldwide as of October 2024. The workforce increased by 1,700 employees compared to the previous year, representing 5% growth.
What is Applied Materials revenue?
Applied Materials reported $27.18 billion in revenue for fiscal year 2024, ending October 27, 2024. This marked the company’s fifth consecutive year of growth.