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pww.comApplied Materials, Inc. Presents at Wells Fargo TMT Conference, Dec-02-2020 02:40 PM - NasdaqGS:AMAT

NasdaqGS:AMAT

Daniel J. Durn [Former Senior VP & CFO] 💬

** Key Points from Daniel J. Durn's Presentation**

  1. Industry Growth Trajectory:

    • The semiconductor industry has moved from a no-growth cyclical market to a growth trajectory since 2012.
    • The industry is expected to continue growing, with higher highs and higher lows over time.
    • This trend aligns with the overall semiconductor industry growth.

  2. Strength in Foundry/Logic and Memory:

    • Foundry/Logic remains a strong segment, but the company is also gaining significant traction in memory, particularly DRAM.
    • In 2020, despite foundry/logic underperforming the overall industry, Applied Materials' systems business is expected to grow over 25%.
    • The company's share in DRAM has increased significantly, outperforming the market.

  3. Display Market:

    • Currently at a cyclical low, but the company expects a return to a more attractive investment cycle in 2022.
    • Green shoots are emerging, and the bias is towards the upside, potentially benefiting the company sooner than planned.

  4. Moore's Law and Innovation:

    • Classic Moore's Law is hitting a wall, leading to a broader portfolio of innovations.
    • New architectures, materials, structures, and packaging methods are driving growth.
    • Applied Materials is well-positioned with a diverse portfolio to capitalize on these new trends.

  5. Competitive Position:

    • Strong performance across various segments, including metal deposition, etch, and inspection.
    • Significant share gains in PVD, CVD, and epi.
    • Leading positions in DRAM, foundry/logic, and packaging.

  6. Demand Sustainability:

    • Robust demand for compute power driven by the data economy and non-consumer discretionary spend.
    • Multi-decade secular trend supporting structural growth in the semiconductor industry.
    • Expectations for sustained high levels of foundry/logic spending.

  7. Specialty Markets:

    • Specialty nodes (28 nm and above) are a growing segment with strong demand.
    • The company is well-positioned in both leading-edge (7, 5, 3 nm) and trailing-node geometries.
    • New equipment sales are increasing due to robust demand in trailing-node geometries.

  8. Memory Market:

    • DRAM: Share has increased from less than 15% in 2012 to over 20% today.
    • Strong performance in DRAM driven by conductor share gains and co-optimization of CVD and etch processes.
    • NAND: Bit production efficiency has improved, and the industry is in the early stages of absorbing previous capacity additions.

  9. Services Business:

    • Services business has outgrown the overall WFE industry by about 50% over the past four years.
    • Drivers include a growing installed base, increasing system complexity, and a shift towards long-term service agreements.
    • High-value-added services, including data-driven performance optimization, are key differentiators.

  10. Future Outlook:

    • Confidence in the structural growth of the semiconductor industry, with potential for WFE to reach $100 billion.

    • Strong lead indicators, such as the infrastructure being put in place, support this positive outlook.

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