Gartner Research

Applied Materials-Tokyo Electron Merger Creates Largest Company in Semiconductor Equipment Industry

Published: 17 October 2013

ID: G00258239

Analyst(s): Dean Freeman, Bob Johnson

Summary

Applied Materials and Tokyo Electron announced their intent to merge, which would create the largest semiconductor equipment company and impact the overall semiconductor industry. Customers, competitors and suppliers must swiftly react to the merger to protect and improve their respective positions.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • The new company will have market leadership in nine key semiconductor technologies and create a strong No. 2 competitor in the etch segment
  • The new company will command more than 25% of all semiconductor equipment revenue and be almost twice as big as the next largest equipment company in the semiconductor industry
  • Supply chain relationships may be impacted because the merger will focus on eliminating redundancies in the supply chain and product mix
  • The new company will be a major player among the semiconductor companies working on the 450 mm wafer-size transition

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