Applied Materials’ Revenue by Segment (2016-2022)

This statistic highlights Applied Materials’ Revenue by Segment, split between Applied Global Services, Corporate and Other, Display and Adjacent Markets, and Semiconductor Systems, reported on a quarterly basis from 2016 onwards.

Applied Materials’ Revenue by Segment

(All figures in millions, except percentages)

• Applied Global Services: The Applied Global Services segment provides integrated solutions to optimize fab performance, equipment, and productivity which also includes upgrades, certain remanufactured earlier generation equipment, spares, services, and factory automation software for display, solar products, and semiconductor. Demand for Applied Global Services is driven by Applied’s large and growing installed base of manufacturing systems as well as customers’ requirements to reduce ramp times, optimize factory output, improve device performance including yield, and optimize operating costs.In Q2 2021, revenue from Applied Global Services was 22% of Applied Materials’ total revenue amounting to $1.20 billion. The revenue from this segment has increased by 18% year-over-year from $1.02 billion in Q2 2020. The increase in revenue was primarily due to higher customer demand on comprehensive service agreements and spares which was partially offset by lower customer demand on legacy systems.

• Display and Adjacent Markets: AKT which is the subsidiary of Applied reported under the Display segment that designs, manufactures, sells, and services equipment to fabricate thin-film transistor LCDs for computer displays, televisions, monitors, electronic tablets, laptops, smartphones, personal computers (PCs), and other consumer-oriented electronic applications. The technologies utilized in chipmaking and LCD fabrication are similar. They are differentiated on the basis of the size and composition of the substrate. Substrates used to manufacture LCD panels can be more than 70 times larger in area than 300mm wafers and are made of glass, whereas wafers are made of silicon.The Energy and Environmental Solutions (EES) group that reported under the Adjacent Technologies segment, presents manufacturing solutions for the generation and conservation of energy. It offers manufacturing solutions for both wafer-based crystalline silicon (c-Si) as well as glass-based thin-film applications. Applied’s products include large-area platforms like the ATONtm for high-quality deposition, c-Si,thin-film PV cell, materials-handling technologies, processes, and fabrication services.The growth of this segment depends on consumer demand for increasingly larger and more advanced TVs and higher resolution displays for next-generation mobile devices. Fluctuation in this segment can be caused by uneven spending patterns by customers. In Q2 2021, revenue from Display and Adjacent Markets was 7% of Applied Materials’ total revenue amounting to $375 million. The revenue from this segment has increased by 3% year-over-year from $365 million in Q2 2020. 

• Semiconductor Systems: The Semiconductor Systems segment consists of capital equipment like rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, etch, wafer packaging, and ion implantation that is used to fabricate semiconductor chips. Semiconductor industry expenditure on capital equipment is driven by demand for advanced electronic products like smartphones, servers, other mobile devices, personal computers, storage, and other products.In Q2 2021, the revenue from Semiconductor Systems was 71% of Applied Materials’ total revenue amounting to $3.97 billion. The revenue from this segment has increased by 55% year-over-year from $2.57 billion in Q2 2020. The increase in revenue was due to higher net sales and favorable changes in customer and product mix.

• Corporate and Other: The revenue from the Corporate and Other category includes revenues from products along with the costs of products sold, for fabricating solar photovoltaic cells and modules and certain operating expenses like costs for share-based compensation; certain management, finance, human resource, legal, and RD&E functions that are not allocated to its reportable segments and are managed separately at the corporate level.In Q2 2021, the revenue from this segment was only 1% of Applied Materials’ total revenue amounting to $32 million. The revenue from this segment has increased by 357% year-over-year from $7 million in Q2 2020.

Company Overview

Applied Materials Inc., is an American-based company established in 1967 by Michael A. McNeilly. Its headquarter is in Santa Clara, California. Applied Materials Inc. completed its initial public offering in 1972 and its common stocks are traded on the NASDAQ Stock Market LLC under the trading symbol “AMAT”.

It offers an array of products, services, and technologies like semiconductors equipment to automate software. In 1984, it opened its technology center in Japan and is the first US semiconductor manufacturer. It has partnered with IIT Bombay to offer a semiconductor technology and manufacturing course. Over the years it has acquired Opal Technologies, Orbot Instruments, Oramir Semiconductor Equipment Ltd., Baccini, Semitool Inc., and Varian Semiconductor Equipment Associates, Inc. Some of its competitors are Tokyo Electron, SEMES, Qualcomm, PDF Solutions, ASML, Lam Research, Arrow Electronics, and KLA Corporation.

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