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frogvillesafeElectronics - Devices

Nov 27, 2013 (3 years and 6 months ago)

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External Use

2

AGENDA

Markets and Business Overview

Mike Splinter

Strategy and
Opportunities

Gary Dickerson

Customers and Products

Randhir

Thakur

Financial Update

George Davis

Questions and Answers

All

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Markets and Business Overview

Mike Splinter

CHAIRMAN and CEO



July 10, 2012

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MOBILITY

AGE

The

Sustained

FOUNDRY

&
LOGIC

investment

UNIT GROWTH

Faster technology ramps

4

Increasing die sizes

Increasing capital cost
per die

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5

Accelerating

INNOVATION

Features

Functions

User
interface

Battery life

Form factor

Technology

COMPLEXITY

High performance

Low power

Compact packaging

Increasing

COMPETITION

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$8B

$10B

$6B

$4B

$12B

Q110

Q411

Q112

Q212E

Q312E

Q412E

Q410

Q310

Q210

Q311

Q211

Q111

Macro

PCs

Seasonal buying

Mobility strength

Die sizes

Process complexity

$32B

in 2010

$35B

i
n 2011

$30B
-

$33B

Seasonal
peak in 1H

WFE SPENDING

BY QUARTER

Third Consecutive Year of
WFE >$30B

6

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7

Utilization rates and wafer starts up quarter
-
on
-
quarter

Slow demand for 200mm equipment

End market demand continues to grow

Industry rationalization
in progress

TV investment remains extremely low

New TV and mobile display
innovation
intensifying

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8

KLA

18 years

$80M to $2B




Started as Applications Engineer


Inspection GM


$50M to $500M


Group Vice President


President

CUSTOMER

6 years





Manufacturing


Litho

Section Manager

VARIAN SEMI

7 years

$500M to $1.2B



Grew share of total implant

from 30% to 75%


Gained share in all of

company’s segments

2003

1979

1986

Gary Dickerson

NEW APPLIED MATERIALS PRESIDENT

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9

Enabling our
CUSTOMERS

success

Developing differentiated
PRODUCTS

that solve high value problems

Driving

PERFORMANCE


and shareholder returns

Strengthening our

EXECUTIVE
TEAM

increases focus on

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Strategy and Opportunities

Gary Dickerson

PRESIDENT



July 10, 2012

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Device
performance
differentiation

Leader in
DEVICE
PEFORMANCE

and

YIELD

12

New device
technology

Materials innovation

CUSTOMER

COMPETITION

IS DRIVING

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Solving
HIGH VALUE PROBLEMS



with

DIFFERENTIATED

VALUABLE


SUSTAINABLE

solutions



drives
SIGNIFICANT GROWTH


for Applied Materials

13

Company Culture

Eliminate Basic Issues

“Trusted Supplier”

Find High Value
Problems

Text

Placeholder

Solve

High Value
Problems

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14

Increasing

DEVICE

PEFORMANCE

and

YIELD

challenges

Leveraging our

leadership in

PRECISION

MATERIALS

ENGINEERING


High
-
k

films

Selective

epitaxy

Reflow

PVD

Flowable

CVD

Integrated ALD

Millisecond anneal

Porous low
-
k films

Electroplating

Conformal doping

Co
-
implants

Precision films

Materials modification

Materials removal

Interface engineering


Film Treatments

Staircase etch

Hard mask films

Metal CMP

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15

Driving major customer

INFLECTIONS

Transistors

Interconnect

Wafer
-
Level Packaging

NAND Flash Technology

MOBILITY

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16

Transistors

Interconnect

Wafer
-
Level Packaging

NAND Flash Technology

Resulting in
DEVICE PERFORMANCE

and YIELD

challenges

3D, low
-
voltage, low leakage, new materials,
atomic control of material interfaces

Resistance, capacitance, reliability,

barrier materials, low
-
capacitance dielectrics

Bumping, through
-
silicon via,

reliability, productivity

Precision dielectrics, conformal materials,
high aspect ratio processes

Major customer

INFLECTIONS

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FOUNDRY

SERVED MARKET

PER
+100K
WSPM

28nm

Poly Oxy
Nitride Gate

20nm

High
-
K Metal

Gate Last

PACKAGING

+

CVD

+

PVD

+

EPITAXY

+

IMPLANT

+

THERMAL

~$2.0B

17

0
100
200
300
400
500
600
2011
2012
2013
2014
Mobility driving

WAFER START
growth

Growth in our
LEADERSHIP AREAS

Incremental Wafers (K WSPM)

MOBILITY

NON
-
MOBILITY

+ $1B

to

$1.4B

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18

We are the
leaders
in

PRECISION
MATERIALS
ENGINEERING

Solving
DEVICE
PERFORMANCE
and

YIELD

challenges will drive
significant
GROWTH


Significant increase
in customer
INFLECTIONS

creates
great
opportunities


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Enabling Customers in the Mobility Era

Dr. Randhir Thakur

EXECUTIVE VICE PRESIDENT

GENERAL MANAGER

SILICON SYSTEMS GROUP



July 10, 2012

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21

SILICON
SYSTEMS GROUP

APPROACH TO

WINNING

EXECUTION FOCUS

Align product portfolio to upcoming inflections

Deliver growth in
revenue and EPS

CUSTOMER ENABLEMENT

Collaborate early to enable customer success

S
olve High Value Problems ahead of others

DIFFERENTIATED PRODUCTS

Drive Device
P
erformance and
Y
ield

Material
s

engineering is our “sweet spot”

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Increasing Device Complexity Drives Growth

22

TRANSISTOR

32/28nm

20nm

INTERCONNECT

32/28nm

20nm

PACKAGING

Bump

TSV

>
30

NEW STEPS

with 25 in

leadership areas

>
25

NEW STEPS

with 20 in

leadership areas

>
15

NEW STEPS

with 12 in

leadership areas

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Growth from Transistor Device Performance Solutions

23

Epi



Enhanced carrier mobility for high performance


Strain engineering with integrated
Epi

and clean

2

1

Implant

Low leakage junctions


Sharper profiles with
cryo
-
implant & energy purity

PVD

Enable gate oxide scaling


Tailored metal gate with atomic level control

3

CMP


Optimal transistor performance


Precise gate definition with in
-
situ process control

4

2

1

3

4

LARGEST FOUNDRY OPPORTUNITIES
from 28nm


20nm

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CASE STUDY:
Extending
Epitaxy

Leadership to Drive Growth

24

Expect
Epitaxy

Growth in Next 24 Months as
New Steps and Materials are Introduced

EPITAXY

s
peeds transistor through strain

2x

steps

Leading selective deposition process
in high volume manufacturing

>100%

served market growth

28nm


20nm

SICONI


PLASMA DRY CLEAN

Improves interface through atomic layer cleaning

10+

steps

Precision material engineering provides

pristine interface for
virtually defect
-
free
devices

>100%

served market growth

28nm


20nm

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Growth from Enabling Low Voltage Interconnects

25

1

2

3

4

PVD

Low resistance and high via
-
chain yield


Thermal reflow seed for void
-
free fill

2

1

CVD

Low capacitance and
electromigration


New cure and treatment steps to lower k;


New barrier step to prevent copper diffusion

ECD

Low resistance


M
ulti
-
zone control for ultra
-
thin seed plating

3

CMP


Line resistance distribution


Precise polish control with eddy current
endpoint

4

LARGEST FOUNDRY OPPORTUNITIES
from 28nm


20nm

+25 Steps to Address Low Voltage and Device Reliability High Value Problems

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26

New Market Growth from Advanced Packaging Inflection

ECD

Low resistance


High aspect ratio void
-
free fill with low overburden

PVD


High reliability


Continuous barrier/seed with temperature management

CMP


Recess / protrusion control with flat surface


Uniform planarization with low defects

CVD

Via isolation with low leakage


Low temperature conformal liner with good adhesion

Etch

Cost effective 3D via


Smooth and vertical profile with high etch rate

PVD UBM

PVD UBM

PVD
RDL

PVD
RDL

HIGHEST GROWTH OPPORTUNITIES IN BUMP AND TSV

Won 2/3 of advanced packaging decisions

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27

Differentiated, Valuable, and Sustainable Products for ≤20nm

VIISta
®

Trident


Implant System

UVision


5 Inspection System

Endura
®

Amber

Copper PVD System

Centura
®

Avatar



Etch System

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Winning with Precision Materials Engineering Leadership

28

TRANSISTOR

INTERCONNECT

PACKAGING

PROJECTED
SAM GROWTH

PER FOUNDRY

100K WSPM

28nm

20nm

+

$700

to
900
M

+

$200

to
300
M

+

$100

to
200
M

50
-
70% Served Market Increase in Leadership Segments

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29

Varian

UPDATE

INTEGRATION

On track to
achieve target synergies
-

$35M in ’12, $80M in ’13

Record revenue quarter in Q2

CUSTOMER EXPERIENCE

14 VLSI customer satisfaction awards

Strong customer pull for leading edge implant products

PRODUCT LEADERSHIP

Extending leadership in transistor and enabling 20nm ramp

Developing
differentiated solutions with
other Applied products

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Wafer Fab Equipment Industry Outlook

30

2H’12

1H’13

Foundry



Seasonal

pattern (1H loaded)

Weak macroeconomics



28nm

ramp, 20nm R&D buys

Mobility megatrend

Logic



PC growth ~ 3%

Strong server demand



Ultrabook
, Server and Cloud growth

NAND



ASP decline

Flat mobile content per box



Slower SSD adoption (PC,

servers)

DRAM



Stable and higher
ASP

PC growth ~ 3%



Mobile and server DRAM growth

Expect 2012 Wafer Fab Equipment Spending of $30
-
$33B

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31

SILICON
SYSTEMS GROUP

Next 12


24months

FOCUS
AREAS

ACCELERATE GROWTH

Solve

Device Performance and Yield challenges to

generate growth and higher
earnings power

ENABLE INFLECTIONS AT CUSTOMERS

Execute on
successful ramp of
mobility inflections in
Foundry/Logic
and
advanced packaging

LEAD MATERIALS ENGINEERING SOLUTIONS

Win

material and 3D device
inflections which
play

to
Applied’s

sweet
spot

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Financial Update

George Davis

EXECUTIVE VICE PRESIDENT

CHIEF FINANCIAL OFFICER


July 10, 2012

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34

LCD spending continues to push out, customers
focused on mobility and new technologies

I
n
-
line

Deferred revenue
and capacity absorption
continues despite strong end market

I
n
-
line

Growth in
-
line with wafer starts, tempered by
low 200mm equipment demand

I
n
-
line

Significant near
-
term foundry pullback and
NAND below expectations

R
evised

D
ownward

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35

* Excludes charges
related to completed acquisitions and announced restructuring and asset impairments

Outlook

AS OF Q2 EARNINGS CALL

Update

Revenue

Flat to


10%

Low End

OF RANGE

Earnings Per Share

(Non
-
GAAP)*


$0.21


0.29

Lower Half


OF RANGE

Q3’12

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36

*Excludes
charges
related to completed acquisitions and announced restructuring and asset impairments

FISCAL YEAR 2012

Outlook to
b
e Updated at Q3’12 Earnings Call

Outlook

AS

OF
2012 ANALYST

DAY

Update

Revenue

$9.1


9.5B

Below Low End

OF RANGE

Earnings Per Share

(Non
-
GAAP)*


$0.85


0.95

Below Low End

OF RANGE

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MODEL PERFORMANCE

37


Operational initiatives on pace


M&A synergies ahead of plan


SSG and AGS expected to hit models in 2012


EES restructuring underway


Display profitable

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S
hare buybacks
and dividends to
increase relative
to past 3 years

CAPITAL STRUCTURE PRIORITIES

38

0
1
2
3
4
5
Dividends
Capital
Expenditures
Share
Repurchase
M&A
$
B Q1’09 to Q1’12

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39

0
0.5
1
1.5
FY'09
FY'10
FY'11
2012 YTD


$300M

DIVIDENDS PAID

$900M

SHARE REPURCHASE

YEAR TO DATE

$BILLION

SHARE REPURCHASE AND DIVIDEND GROWTH

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40

SUMMARY


Increasing customer device performance challenges


Materials engineering leadership creates growth opportunity


Strengthened management
team
with
new President


Foundry pull
-
back impacting near
-
term outlook


>2X annual share repurchase