AMAT throws the brakes on LED fab equipment

May 10, 2012 — In light of “challenging industry conditions” in the light-emitting diode (LED) and photovoltaics (PV) manufacturing sectors, Applied Materials (AMAT) decided to restructure its Energy and Environmental Solutions (EES) segment, according to a Form 8-K filing.

While the restructuring focuses greatly on wafering systems for PV applications (see our sister publication, RenewableEnergyWorld.com for that story), Applied Materials’ roadmap includes “significant reductions in development activities for LED.” AMAT plans to support existing metal-organic chemical vapor deposition (MOCVD) customers — by and large LED makers — but will not be pursuing any new business, noted Barclays Capital.

Barclays lists Samsung, Silan, Toshiba, TSMC, Micron, and IMEC among Applied Materials’ MOCVD customers. However, analysts predict that Veeco and AIXTRON will hold enough market share (90%) in MOCVD to make other entrants minor players.

“Workforce-related actions will be finalized and implemented in accordance with local legal requirements and in consultation with employees and employee representative bodies, as required,” states AMAT’s Form 8-K filing on the EES restructuring. Approximately 250 job positions will be affected.

After AMAT’s Analyst Day in March, Credit Suisse analysts noted that the company had de-emphasized comments on MOCVD.

And one year ago, Barclays and Credit Suisse were skeptical about AMAT’s MOCVD prospects, deeming its entry a “miscalculation” in such a competitive market, where the company would not make “any traction.”

Visit the LED Manufacturing Channel on Solid State Technology and subscribe to the LED Manufacturing News monthly e-newsletter!

POST A COMMENT

Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

NEW PRODUCTS

Entegris announces GateKeeper GPS platform
07/15/2014Entegris, Inc., announced last week the launch of GateKeeper GPS, its next-generation of automated regeneration gas purification system (GPS) technology....
Bruker introduces Inspire nanoscale chemical mapping system
07/15/2014Bruker today announced the release of Inspire, the first integrated scanning probe microscopy (SPM) infrared system for 10-nanometer spatial...
MEMS wafer inspection system from Sonoscan
06/25/2014Sonoscan has announced its AW322 200 fully automated system for ultrasonic inspection of MEMS wafers....