Applied Materials Inc (AMAT) Quarterly and Annual Segment Results by Country and Region - CSIMarket
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Applied Materials Inc  (NASDAQ: AMAT)
    Sector  Technology    Industry Semiconductors
   Industry Semiconductors
   Sector  Technology

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Description of Applied Materials Inc's Business Segments


Applied Materials Inc. is a global leader in materials engineering solutions for the semiconductor, display, and solar industries. The company is structured into several key segments, each offering a wide range of advanced products and services.

1. Silicon Segment

The Silicon Systems Group (SSG) is a pivotal part of Applied Materials’ Silicon segment, focusing on the development, manufacturing, and sale of essential manufacturing equipment for semiconductor chip fabrication. This equipment is integral to producing a variety of integrated circuits (ICs), which are primarily built on a silicon wafer substrate.

Key Equipment and Processes

Applied Materials offers systems that encompass virtually all critical steps in the semiconductor chip manufacturing process, including:

- Atomic Layer Deposition (ALD): A technique used to deposit thin films one atomic layer at a time, allowing for precise control over film thickness and uniformity.
- Chemical Vapor Deposition (CVD): Utilized for creating high-quality films by chemical reactions in the vapor phase.
- Physical Vapor Deposition (PVD): A process for depositing thin films by the condensation of vaporized material onto a substrate.
- Etching: A method for removing layers from the surface of a wafer to create patterns that define circuit components.
- Rapid Thermal Processing (RTP): A technology that applies rapid heating and cooling to wafers to process materials efficiently.
- Chemical Mechanical Planarization (CMP): A polishing process that ensures a flat, even surface on the wafer after multiple deposition and etching steps.
- Wafer Wet Cleaning: Necessary for removing contaminants during the chip manufacturing process.
- Wafer Metrology and Inspection: Systems that ensure the precision and quality of wafers by measuring features and inspecting for defects.

Chip Manufacturing Process

The fabrication process involves the creation of transistors, capacitors, and other circuit elements, followed by the application of multiple layers of interconnect wiring. Advanced chip designs may require up to approximately 500 individual manufacturing steps. As circuit density increases, the complexity of these steps also rises, necessitating more sophisticated manufacturing solutions.

Training solutions and extensive support for both integrated device manufacturers (IDMs) and foundries enable Applied Materials to maintain its leading position in supplying tools for producing both memory and logic chips.

Materials and Innovations

- Copper Interconnects: Applied Materials is a leader in solutions for manufacturing copper-based chips, enhancing performance due to coppers lower electrical resistance compared to aluminum.
- Low Dielectric Constant Films (Low-k): Systems for depositing these films have become increasingly vital as they help reduce capacitance between interconnect layers.
- Transistor Advances: A focus on strain engineering to enhance the speed of transistors through specialized films has placed Applied Materials at the forefront of minimizing current leakage, especially around the 45nm technology node, integrating high-k dielectrics and metallization technologies.

Platforming and Wafer Size

Applied Materials’ single-wafer processing platforms—Centura®, Endura®, Producer®, and Vantage®—are tailored to support a range of manufacturing technologies. The industry has largely transitioned to 300mm (12-inch) wafers, with Applied providing comprehensive solutions for both 300mm and earlier 200mm wafer systems.

Fab Solutions Segment

Through the Applied Global Services group, the Fab Solutions segment delivers services and products aimed at optimizing semiconductor fabrication facilities and operations.

Service Offerings

- Fab Services: These include comprehensive operations services designed to maintain and optimize fab performance. They provide genuine spare parts and critical cleaning and refurbishment services to extend the lifecycle of equipment.
- Equipment Services: Applied offers remanufactured systems, technical training, and system enhancements designed to extend equipment life and improve overall efficiency. Energy-saving solutions also play a key role.
- Automation Services: Automation software solutions enhance manufacturing efficiency by providing integrated management systems that enable real-time process monitoring and decision-making.

Display Segment

Under its display segment, Applied Materials, through its subsidiary AKT, focuses on manufacturing equipment for thin film transistor LCDs (TFT-LCDs).

Product Offerings

The product line includes systems for processing glass substrates used in LCD manufacturing, with capabilities to handle increasingly large substrates critical for larger televisions and displays. Key technologies include:

- PECVD Systems: For depositing dielectric and semiconducting films in the creation of LCD panels.
- Vertical Sputtering Systems: Used for depositing the color filter layer in LCD panels.
- Testing Technology: Electron beam systems that provide advanced testing capabilities to ensure quality in production without damaging high-value substrates.

Adjacent Technologies Segment

The Energy and Environmental Solutions (EES) group under the Adjacent Technologies segment is focused on the manufacturing solutions that enhance energy generation and conservation.

Solar Energy Solutions

Applied Materials has made significant strides in the solar photovoltaic (PV) market, enhancing the efficiency and cost-effectiveness of solar cell production with:

- Thin Film Technology: The Applied SunFabâ„¢ Thin Film Line is a notable example, designed for large-scale production of thin film solar modules based on substantial glass substrates, catering to extensive applications such as solar farms.
- C-Si Technologies: Through its acquisition of HCT Shaping Systems SA, Applied has bolstered its capabilities to reduce silicon consumption in crystalline silicon solar cell production.

Additional Technologies

The segment also develops roll-to-roll vacuum web coating systems and large-area sputtering equipment for low-emissivity architectural glasses, demonstrating its commitment to versatile manufacturing solutions across various markets.

Conclusion

Applied Materials Inc. continues to strengthen its position as an industry leader through its innovative range of products and services spanning the semiconductor, display, and solar industries. The company is committed to advancing manufacturing technologies that drive efficiency and performance, ensuring its clients remain competitive in an increasingly complex global market.


Composition of Applied Materials Inc Revenues by Segments

 
Semiconductor Systems    75.41 % of total Revenue
Applied Global Services    21.05 % of total Revenue
Other    3.54 % of total Revenue
China    26.38 % of total Revenue
Korea    19.87 % of total Revenue
Taiwan    27.24 % of total Revenue
Japan    7.88 % of total Revenue
Southeast Asia    2.34 % of total Revenue
Asia Pacific    83.72 % of total Revenue
United States    11.9 % of total Revenue
Europe    4.39 % of total Revenue

Q2 three months ended (Apr 26 2026)
Revenues by Business Segments Revenues
(in millions $)
%
(of total Revenues)
Semiconductor Systems 5,965.00 75.41 %
Applied Global Services 1,665.00 21.05 %
Other 280.00 3.54 %
China 2,087.00 26.38 %
Korea 1,572.00 19.87 %
Taiwan 2,155.00 27.24 %
Japan 623.00 7.88 %
Southeast Asia 185.00 2.34 %
Asia Pacific 6,622.00 83.72 %
United States 941.00 11.9 %
Europe 347.00 4.39 %
Total 7,910.00 100 %




Q2 three months ended (Apr 26 2026)
Revenue Growth rates by Segment Y/Y Revenue
%
Q/Q Revenue
%
Semiconductor Systems 10.44 % 16.03 %
Applied Global Services 17.25 % 6.8 %
Other 0.36 % -10.26 %
China 17.64 % -0.38 %
Korea 0.64 % 7.82 %
Taiwan 7.91 % 25.15 %
Japan 8.92 % 18.67 %
Southeast Asia 37.04 % -44.78 %
Asia Pacific 9.64 % 7.94 %
United States 16.46 % 43.45 %
Europe 37.7 % 57.01 %
Total 11.41 % 12.81 %




Q2 three months ended (Apr 26 2026)
Income by Business Segments Income
(in millions $)
%
(Profit Margin)
Semiconductor Systems 3,264.00 54.72 %
Applied Global Services 577.00 34.65 %
Other 106.00 37.86 %
Total 2,806.00 35.47 %




Q2 three months ended (Apr 26 2026)
Income Growth rates by Segment Y/Y Income
%
Q/Q Income
%
Semiconductor Systems - 16.82 %
Applied Global Services - 7.45 %
Other -11.67 % 1.92 %
Total 31.31 % 38.5 %




Annual Report on Applied Materials Inc Divisions, Sales by Country

 
Semiconductor Systems   Semiconductor Systems Segment contribution to total sales 73.32 % of total Revenue
Applied Global Services   Applied Global Services Segment contribution to total sales 22.51 % of total Revenue
China   China Segment contribution to total sales 30.07 % of total Revenue
Korea   Korea Segment contribution to total sales 19.77 % of total Revenue
Taiwan   Taiwan Segment contribution to total sales 24.17 % of total Revenue
Japan   Japan Segment contribution to total sales 8.01 % of total Revenue
Southeast Asia   Southeast Asia Segment contribution to total sales 3.79 % of total Revenue
United States   United States Segment contribution to total sales 10.8 % of total Revenue
Europe   Europe Segment contribution to total sales 3.39 % of total Revenue
Corporate and Other   Corporate and Other Segment contribution to total sales 4.18 % of total Revenue
Foundry logic and other   Foundry logic and other Segment contribution to total sales 0 % of total Revenue
Dynamic random-access memory DRAM   Dynamic random-access memory DRAM Segment contribution to total sales 0 % of total Revenue
Flash memory NAND   Flash memory NAND Segment contribution to total sales 0 % of total Revenue
Total outside United States   Total outside United States Segment contribution to total sales 89.2 % of total Revenue


Twelve months ended 2025
AMAT s Annual Revenue by Geography and Business Segments Sales
(in millions $)
%
(of total Sales)
Semiconductor Systems 20,798.00 73.32 %
Applied Global Services 6,385.00 22.51 %
China 8,529.00 30.07 %
Korea 5,608.00 19.77 %
Taiwan 6,857.00 24.17 %
Japan 2,273.00 8.01 %
Southeast Asia 1,076.00 3.79 %
United States 3,063.00 10.8 %
Europe 962.00 3.39 %
Total 28,368.00 100 %
Corporate and Other 1,185.00 4.18 %
Foundry logic and other 0.00 0 %
Dynamic random-access memory DRAM 0.00 0 %
Flash memory NAND 0.00 0 %
Total outside United States 25,305.00 89.2 %


Twelve months ended 2025
AMAT s Annual Income by Country and Business Segments Income
(in millions $)
%
(Profit Margin)
Semiconductor Systems 11,268.00 54.18 %
Applied Global Services 2,134.00 33.42 %
Total 6,998.00 24.67 %
Corporate and Other 406.00 34.26 %

Twelve months ended 2025
Annual Revenue and Income Growth by Country and Business Segments % Y/Y Sales Growth % Y/Y Income Growth
Semiconductor Systems 4.45 % -
Applied Global Services 2.57 % -
China -15.7 % -
Korea 24.82 % -
Taiwan 71 % -
Japan 5.52 % -
Southeast Asia -5.7 % -
United States -19.77 % -
Europe -33.33 % -
Total 4.39 % -2.49 %
Display - -
Corporate and Other 13.94 % -
Foundry logic and other -1.47 % -
Dynamic random-access memory DRAM -7.14 % -
Flash memory NAND 75 % -
Total outside United States 8.34 % -



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