Applied and Tokyo Electron combine
Applied CEO, Gary Dickerson, will be CEO of the combined group. Tokyo Electron CEO Tetsuro Higashi becomes chairman of the combined group. Applied shareholders will own 68% of the combined group.
Rationale for the merger is the consolidation of the customer base. Three companies, Intel, Samsung and TSMC, will spend over half of the $54 billion spent on semiconductor manufacturing equipment this year.
The top ten buyers of semiconductor manufacturing equipment will spend 76% of the total amount spent.
This means suppliers of equipment have to maintain large R&D efforts.
The combined group expect savings of $250 million in the first year of operation.
Tokyo Electron made a loss of $30 million in Q2.