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TAP TIMES                                              Volume 10, Number 8

           Test, Assembly & Packaging TIMES                                      August 2019

        Applied Materials makes another try at getting bigger by acquisition

                               pplied Materials,
                               an iconic provider
                               of front-end tools
                               for the fab and
                               the largest equip-
                               ment maker in the

        Aindustry by reve-
          nue, announced with much bal-
          lyhoo, a “merger of equals” in
          September 2013.

                       Ron Iscoff, Editor                       The  Applied Materials  Centura Ultima  X HDP-CVD
                                   (High-Density Plasma Chemical Vapor Deposition) cham-
                                                                ber is one of the company’s landmark products.

        Equal partners                                          This combination, said the companies,
        The equal partner, reported Applied (num-               would result in an estimated market valua-
        ber one then, number one now), was to                   tion of $29 billion (¥2.8 trillion).
        be the Japanese giant Tokyo Electron Ltd.,
        at the time the fourth largest equipment
        maker in the industry for 2013, according               It’s a match!
        to Wikipedia.                                           It seemed to all the world to be a match.
                                                                Both companies’ boards had approved the
        The only semiconductor gear makers                      deal.  The technologies from each compa-
        larger than TEL were the Dutch ASML and                 ny were complementary and leading edge.
        U.S.-owned Lam Research.
                                                                Gary Dickerson, Applied’s
                                                                president and CEO (right), suf-
        A global behemoth                                       fused with excitement over the
        The combined company would rank as a                    forthcoming merger, said in a
        behemoth never before seen on a global                  thoughtfully crafted PR release:
        scale.  This size, of course, called for two
        headquarters—One in Santa Clara, Ca-                    “We are creating a global innovator in pre-
        lif., Applied’s home, and an alternate but              cision materials engineering and pattern-
        equal headquarters in Tokyo, home base                  ing that provides our new company with
        for TEL.                                                significant opportunities to solve our cus-
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