Applied Materials paying heavy price for IBM’s Cobalt Cladding to regain lost share to Lam

By : |June 27, 2014 0

USA: Applied Materials announced its Applied Endura Volta CVD Cobalt system, the “only tool capable of encapsulating copper interconnects in logic chips beyond the 28nm node by depositing precise, thin cobalt films.”

Sounds good right? Lets look deeper:

1. The technology was developed at IBM with work done at IBM Research, Albany, NY, IBM T.J. Watson Research Center, Yorktown Heights, NY, IBM STG Hopewell Junction, NY, IBM STG, Essex Junction, VT.

2. Applied Materials is paying a hefty licensing fee for the technology, eroding profits on the tool. Applied implies in its press that it is their invention.

3. Applied Materials continues to lose market share in the metal CVD sector to Lam Research. IBM’s share dropped to 17.6 percent in 2013 from 18.1 percent in 2012. Lam Research’s market share increased from 65 percent in 2012 to 71.3 percent in 2013. Applied’s share would have eroded even further if it wasn’t for TEL’s market share drop to 8.9 percent in 2013 from 12.5 percent in 2012, which depressed the overall metal CVD market.

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