Splinter interview from BW
JUNE 21, 2004
INDUSTRY INSIDER
Cleverly Chasing The Chip Boom
Applied Materials' Michael Splinter talks about adapting to the upsurge in demand
You can't steer a roller coaster. You can only hang on and ride out the drops, twists, and loops. That's how things work in the chip industry, where the best companies routinely white-knuckle their way through precipitous ups and downs. As a leading supplier of robotic fabrication gear used by Intel (INTC ), Samsung, and others to turn silicon wafers into integrated circuits, Applied Materials Inc. has learned how to keep its cool. The Santa Clara (Calif.) company saw revenues slide to $4.5 billion last year, from $9.6 billion in 2000. Profits in the same period sank to a net loss of $149 million, from $2.1 billion.
Managing that kind of plunge might cause some execs to panic. But for Applied Materials CEO Michael R. Splinter, it's all part of the ride. And these days, he's enjoying the rush as the chip biz gathers speed for another period of expansion. A 33-year industry veteran, Splinter joined Applied Materials in April, 2003, after nearly two decades at Intel Corp., where his posts included top spots in both sales and manufacturing. He recently met with a panel of BusinessWeek staff, including Industries Editor Adam Aston. Here are edited highlights of that discussion:
At long last, the chip sector is back. How are you doing?
In the past six months, we started to see an upturn. The chipmakers began to see strong growth several quarters before that. It took them a while to absorb the existing capacity. By autumn last year, companies that had been cautious about buying new tools quickly started to do so. Our financials reflect this: In the last quarter of 2003, revenues hit $1.22 billion, followed by $1.55 billion the next quarter and $2.02 billion in the second quarter of 2004. In that time, we've also gained market share. [snip]
for subscribers:
businessweek.com:/print/premium/content/04_25/b3888025_mz009.htm?gl
Gottfried |
