applied materials israel jun2016

External Use

Applied Materials Israel June 2016

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WHAT WE DO

We make the equipment that makes the components that change the world.

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Applied’s Technology Enabling Tablet PC

LCD display

9.7” LED

backlit panel

Touch panel

capacitive

multitouch

DisplayEnabled by Applied Materials’PE-CVD, PVD, test, and Roll-to-Roll equipment(>30% of tablet BOM*)

SemiconductorEnabled by Applied Materials’Semiconductor equipment – microprocessor 256MB DRAM 16GB MLC NAND Flash I/O controller multi-touch controller(>20% of tablet BOM*)

Source: iFixit, UBS, Applied Materials* Refers to % of Bill of Materials processed by Applied Materials equipment

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What’s in an iPhone?

Source: Tech Insights Teardown

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Our Customer Base

Logic MemoryFoundry

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The Global Strength of Applied

Stock Ticker: Nasdaq: AMAT

Fiscal 2015 Revenue: $9.7 billion

Fiscal 2015 RD&E: $1.5 billion

Founded: November 10, 1967

Headquarters: Santa Clara, California

Global Presence: 81 locations in 18 countries

Principal Locations United States, Israel, Singapore, Taiwan

Employees*: ~14,600 worldwide

Patents: ~10,200 issued

Data as of fiscal year end, October 25, 2015*Excluding temporary and interns

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Development & Manufacturing

Center

Applied in Israel ~1,000 Employees

► ~500 RD&E, ~150 Manufacturing► Additional activities in the service segments

Facilities: 613,000 sq. feet► Clean Rooms & Labs: 49,000 sq. feet

7

Jerusalem

Tel Aviv

Haifa

Rehovot

Kiryat Gat

Migdal Haemek

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What Do We Do?Provide inspection and metrology solutions for wafer fab industry

30 nm

DefectsInspection Review & analysis

CD’sMeasurementMonitoring

Process Diagnostics &

Control

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Our Technology Food Chain

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Electronics

$1.7T

E1243567001A

Chip

$300B

Wafer Wafer Fab Equipment

$60B

Applied Materials Israel (PDC)

Optical & E-Beam solutions for

Wafer Inspection & Review, CD SEM & Mask Inspection

Process Diagnostics & Control $4.2B

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What is a Defect?An undesirable local change that may kill the chip or affect its reliability

10 Applied Materials Confidential

Bridging Protrusion Particle LineThinning Scratch Residue Void

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It’s all about YieldDefectivity and process control are directly linked to yield

Modeled Yield Curve

time

prod

uctiv

ity

Shorten ramp time

Maintain and improve yield at volume production

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Moore’s LawThe number of transistors on integrated circuits doubles every two years

“In 1965, Gordon Moore sketched out his prediction of the pace of silicon technology. Decades later, Moore’s Law remains true, driven largely by Intel’s unparalleled silicon expertise.”(Source: Intel; Copyright © 2005 Intel Corporation)Source: wikipedia

Moore’s law results in the shrinking of design rules the industry driver

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Osborne Portable Computer (1981)vs. iPhone (2007)

Source: Wikipedia

135gr / 13 kg = 100 times lighter

412 MHz / 4MHz = 100 times faster

$200-300 / $2500 = 10 times cheaper

…Moore’s law in practice

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Shrinking Critical DimensionsAs technology shrinks, smaller defects become critical and our job becomes harder

1994 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

200

180

160

140

120

100

80

60

40

20

10 nm

Bacteria: 1µm

Virus: 50nm

Small molecule: 1nm

(nm)

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Working in the ‘Nano’ Domain

Red Blood Cell ~ 7um

Typical Defect ~40nm

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How Hard Can It Be?Detecting a 40nm defect on a wafer is like …

40nm defect

300mm Wafer

Imaging

… Finding an ant in Manhattan

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Our Reality – A Multi-Technology Environment

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OpticsSEMElectronics, Image Processing

Algorithms, Software

Mechanics, Motion

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What Does it Take ?

• Lasers & sensors• Scanning electron microscopy

• Precise mechanics & vacuum• Electronics & motion control• Applied physics• System engineering

• Image processing algorithms• Software (lots of software…)• Application• Customer support

• Quality• Supply chain management

Advanced Imaging Complex Systems

Value Creation Manufacturing, Engineering & Assembly

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Product Portfolio

Insp

ectio

n &

Rev

iew

UVision 7Brightfield Inspection

SEMVision G6Defect Review

Lith

o M

etro

logy

Aera 4Mask Inspection

VeritySEM 5iCD Metrology

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What’s in a Tool?

Advanced electronics

10’s GPPS, Low noise

SW & algorithmsGUI, machine

learning

SEM and vacuum

1nm Resolution

Laser and optics

DUV High Power, State of the art Microscopy

Precise motion and mechanics

10’s nm accuracy

Years of development

5-8 from new platform to revenue

Several $M price tag

>1 M$ BOMThousands of

line items

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We do it (almost) all in Israel…

Sales

Support

R&DMarketing

Manufacturing

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The Future is Full of Opportunities

Digital Consumer Growing demand for Internet-enabled services & products

Mobile Wireless data rates accelerating

StorageUnderlying technologies changing rapidly

Emerging MarketsPacing next wave of technology adoption