MKS Instruments, Inc. was founded in 1961 as a Massachusetts corporation. We
are a global provider of instruments, subsystems and process control solutions
that measure, control, power, monitor and analyze critical parameters of advanced
manufacturing processes to improve process performance and productivity. We
also provide services relating to the maintenance and repair of our products,
software maintenance, installation services and training.
We group our products into three groups of similar products based upon the
similarity of product function. These three groups of products are: Instruments,
Control and Vacuum Products; Power and Reactive Gas Products; and Analytical
Solutions Products. Our products are derived from our core competencies in pressure
measurement and control, materials delivery, gas composition analysis, control
and information technology, power and reactive gas generation and vacuum technology.
Our products are used in diverse markets, applications and processes. Our primary
served markets are manufacturers of capital equipment for semiconductor devices,
and for other thin film applications, including flat panel displays, solar cells
light emitting diodes (“LEDs”), data storage media, and other advanced
coatings. We also leverage our technology in other markets with advanced manufacturing
applications, including medical equipment, pharmaceutical manufacturing, energy
generation and environmental monitoring.
Our current reportable segments are Advanced Manufacturing Capital Equipment,
Global Service, Asia Region Sales and Other. The primary change to the segment
structure was to separate worldwide service from product sales and create a
separate reportable segment known as Global Service. Product sales in the Advanced
Manufacturing Capital Equipment segment remained with that segment. Asia product
sales became a separate reportable segment. The product sales from the operating
segments that made up the Analytical Solutions Group and Europe Region Sales
were combined into the Other segment and are not reported separately, as they
are individually immaterial and collectively remain below the separate segment
guidelines. We report corporate expenses and certain intercompany pricing transactions
in a Corporate and Eliminations reconciling column.
The Advanced Manufacturing Capital Equipment segment includes the development,
manufacture and sales of instruments, control and vacuum products; and power
and reactive gas products, all of which are utilized in semiconductor processing
and other similar advanced manufacturing processes. Sales in this segment include
both external sales and intercompany product sales, which are recorded at transfer
prices in accordance with applicable tax requirements. The Global Service segment
includes the worldwide servicing of instruments, control and vacuum products,
power and reactive gas products and certain other product groups, all of which
are utilized in semiconductor processing and other similar advanced manufacturing
processes. The Asia Region Sales segment mainly includes sale of products that
are re-sold from the Advanced Manufacturing Capital Equipment and Other segments
into Asia regions. The Other segment includes operating segments that are not
required to be reported separately as reportable segments and includes sales
of products that are re-sold from the Advanced Manufacturing Capital Equipment
into Europe regions as well as sales from other operating segments.
Semiconductor Manufacturing Applications
The majority of our sales are derived from products sold to semiconductor capital
equipment manufacturers and semiconductor device manufacturers. Our products
are used in the major semiconductor processing steps such as depositing thin
films of material onto silicon wafer substrates and etching and cleaning circuit
patterns. In addition, we provide specialized instruments and software to monitor
and analyze process performance.
We anticipate that the semiconductor manufacturing market will continue to account
for a substantial portion of our sales. While the semiconductor device manufacturing
market is global, major semiconductor capital equipment manufacturers are concentrated
in China, Japan, Korea, Taiwan and the United States.
Other Advanced Manufacturing Applications
Our products are used in the manufacture of flat panel displays, LEDs, data
storage media, solar cells and other coating applications, including architectural
glass, that require the same or similar thin film processes as semiconductor
manufacturing.
Flat Panel Display Manufacturing
Flat panel displays are used in electronic hand-held devices, laptop computers,
desktop computer monitors and television sets. We sell products to flat panel
display equipment manufacturers and to end-users in the flat panel display market.
Major manufacturers of flat panel displays are concentrated in China, Japan,
Korea and Taiwan, and major manufacturers of flat panel display equipment are
concentrated in China, Japan, Korea and the United States. The transition to
larger panel sizes and higher display resolution is driving the need for improved
process control to reduce defects.
Light Emitting Diodes
LEDs are made using vacuum processes similar to semiconductor chip manufacturing.
Because of their high brightness and long life, as well as environmentally friendly
benefits such as lower power consumption, LEDs have experienced rapid acceptance
in back side lighting of flat screen television displays and in general lighting
applications.
Solar Cells
Our products are used in crystalline silicon and thin film processes to manufacture
photovoltaic cells. Crystalline silicon technology requires wafer based deposition
systems and is currently the dominant manufacturing technology in the solar
panel industry.
Data Storage Media
Our products are used to manufacture storage media that store and read data
magnetically; optical storage media that store and read data using laser technology;
hard disks; data storage devices; and digital video discs.
The transition to higher density storage capacity requires manufacturing processes
incorporating tighter process controls. Major manufacturers of storage media
are concentrated in Japan and the Asia Pacific region, and major manufacturers
of storage media capital equipment are concentrated in Europe, Korea and the
United States.
Other Advanced Coatings
Thin film coatings for diverse applications such as architectural glass and
packaging are deposited using processes similar to those used in semiconductor
manufacturing. Thin film processing manufacturers are concentrated in Europe,
Korea and the United States.
Other Advanced Applications
Our products are used in other advanced applications, including energy generation
and environmental monitoring processes such as nuclear fuel processing, fuel
cell research, greenhouse gas monitoring, and chemical agent detection; medical
instrument sterilization; consumable medical supply manufacturing and pharmaceutical
applications. Our power delivery products are also incorporated into other end-market
products such as medical imaging equipment. In addition, our products are sold
to government, university and industrial laboratories for vacuum applications
involving research and development in materials science, physical chemistry
and electronics materials. Major equipment and process providers and research
laboratories are concentrated in Europe, Korea and the United States.
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