Applied Materials, Inc. (AMAT) recently reported record revenue and operating profit in its first quarter ended January 28, 2018. Besides beeing the big giant for wafer equipment they are also in the lead for display, for TV as well as smartphone and especially for the lastets size 10.5 Gen.
According the the recent news covered by Seeking Alpha (LINK), Applied Materials is counting on revenue growth from 10.5G LCD plants and from its operations in LTPS backplanes and OLED encapsulation, primarily for the smartphone sector.
In the recent 1Q 2018 earnings call - Gary E. Dickerson - Applied Materials said: "In Display, there are two equally large market inflections driving capital investments: the introduction of Gen 10.5 substrates for TV manufacturing and organic LED displays. In mobile, the transition to OLED displays is compelling. This is because rigid OLED offers significant performance, power and cost advantages over LCD, and flexible OLED will enable new form factors, such as curved and eventually foldable screens. As a result, our positive outlook for 2018 and beyond remains unchanged. Display is a unique growth driver for Applied, and we expect to increase our revenue by more than 30% in 2018 on top of nearly 60% growth last year."
According the the recent news covered by Seeking Alpha (LINK), Applied Materials is counting on revenue growth from 10.5G LCD plants and from its operations in LTPS backplanes and OLED encapsulation, primarily for the smartphone sector.
In the recent 1Q 2018 earnings call - Gary E. Dickerson - Applied Materials said: "In Display, there are two equally large market inflections driving capital investments: the introduction of Gen 10.5 substrates for TV manufacturing and organic LED displays. In mobile, the transition to OLED displays is compelling. This is because rigid OLED offers significant performance, power and cost advantages over LCD, and flexible OLED will enable new form factors, such as curved and eventually foldable screens. As a result, our positive outlook for 2018 and beyond remains unchanged. Display is a unique growth driver for Applied, and we expect to increase our revenue by more than 30% in 2018 on top of nearly 60% growth last year."
Dickerson further stated:
- year-over-yearoutlook for Display business is greater than 30% growth, and 2019 and beyond also look very strong.
- for mobile versus TV Applied Materials has an about 50/50 mix. In TV, they see increased adoption of larger screens and they are tracking 13 Gen 10.5 projects. As an example if you produce 65-inch TVs with Gen 10.5, you get eight 65-inch TVs per plane and only three with Gen 8.5 and driving the TV business.
Chart above from IHS (thru SeekingAlpha, LINK) shows planned equipment purchases for 10.5G quipment, install dates, and production ramp up.
Applied Materials AKT-PECVD covers the complete range of glass sizes used in the display industry from Gen 2 (0.2m2) all the way up to Gen 10 (9m2). The systems offer processes for both amorphous silicon (a-Si) and metal oxide (MOx) backplane
technologies. Available films include both doped and undoped (a-Si),
silicon oxide (SiOx), silicon oxynitride (SiON), silicon nitride (SiN),
and in-situ multi-layer deposition. (appliedmaterials.com)
According to Seeking Alpha the maine cometitors for current technologies (<10.5 Gen) are :
For the TFT Backplane:
- PECVD companies - AMAT, Jusung Engineering (Korea), and Wonik IPS (Korea)
- PVD companies - AMAT, Avaco (Korea), Iruja (Korea), and Ulvac (Japan)
- Laser Anneal companies – Coherent, AP Systems (Korea), Japan Steel Works (Japan)
- Jusung Engineering (Korea)
- Wonik IPS (Korea)
- TES (Korea)
These Korean companies all have ALD technologies and equipment for displays. The advantages with ALD are:
- thin films offer better water and oxygen protection
- a thinner film is needed to provide the same protection as thicker PECVD-coated films
- the slower coating process by ALD is compensated by a thinner film
This is the second article on this blog that used my information without acknowledging the source, me, or my company. The chart on timeline came from my Seeking Alpha article entitled "Applied Materials' Display Segment Should Grow 10% In FY 2018." So I present arguments in my article that Applied WILL NOT GROW 30%. The author of this above article takes my arguments (CEO Dickerson only referenced the 30% growth in his earnings call but the topic was the title of my article. So, the author does not even discuss my argument, instead spins it in a positive way. Why, maybe he's looking for Applied advertising, I don't know. But it is very deceptive. Read my entire article on Seeking Alpha here: https://seekingalpha.com/article/4153463-applied-materials-display-segment-grow-10-percent-fy-2018. As it is a blog, I doubt this comment will remain.
ReplyDeleteHello Roert, sorry to dissapoint you again. I will correct the reference. I may disappoint you that this experimental blog have less than 30 readers and you are the only active reader. When you refer to "my company" please let me know the name of it so it can be correctly referenced.
ReplyDeleteWith respect to the references given, Seeking Alpha is clearly referenced as source for the call trascript and graph. There is no international standard to reference the writer and Seeking Alpha has clear rules on how mauch material can be taken for bloggers. If Seeking Alpha has changed the rules I can adjust the text. If it has to be referenced differently in the cases when you are the writer, I am not aware of that. Please let me know.
ReplyDeleteYour article in Seeking Alpha was actually linked already in 2nd paragraph. I have now also added the link below chart from IHS (https://seekingalpha.com/article/4153463-applied-materials-display-segment-grow-10-percent-fy-2018). However, I can not take responsibility for your analysis you make. I you wish I can remove the chart and refernece to your article.
ReplyDelete