Applied Materials is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Applied Materials’ expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. Applied Materials’ innovations make possible the technology shaping the future.
In Israel, Applied Materials develops, manufactures, markets and supports process diagnostics and control equipment designed for semiconductor processes. Located in Rehovot and employing over 1250 people, Applied Materials Israel plays a significant role in enabling the production of the next generation of microchips.

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Applied Materials Enabling Bigger Waves of Profitable Growth

NEW YORK, Sept. 27, 2017 -- At its 2017 Analyst Day, Applied Materials, Inc. unveiled a new three-year financial outlook and illustrated how materials innovation is enabling a new era of computing to make possible IoT, big data and artificial intelligence (A.I.). The company is targeting non-GAAP adjusted earnings per share (EPS) of $5.08 for fiscal 2020 based on a $45 billion wafer fab equipment (WFE) market with increases in market share, gross margin, R&D investment and operating profit.

"Our markets are strong and getting stronger. New technology inflections like A.I. and big data will increase demand for high-performance semiconductor processing and storage," said Gary Dickerson, president and CEO of Applied Materials. "With the industry's broadest and most innovative technologies, Applied Materials helps accelerate customer roadmaps by enabling chips and displays to be built in entirely new ways."

"As we enter a new era in computing, market demand is stronger, customer profitability is increasing and capital intensity is rising," said Dan Durn, senior vice president and CFO of Applied Materials. "These factors combined with the strength of our diverse portfolio give us confidence in our ability to deliver higher levels of profitable growth."

A.I. and big data are sparking a renaissance in chip design with new types of processors in development by a larger set of companies. More logic and DRAM capacity will be needed to process the increase in data, along with more NAND capacity for faster processing and storage. Based on this and the continued growth of silicon content in smartphones, Applied expects WFE spending in 2017 and 2018 combined to be $90 billion.

In Services, Applied expects to deliver compound annual growth of 15 percent for the next three years to reach $4.5 billion in revenue by 2020 driven by continued strong demand for its equipment, higher process complexity and greater demand for comprehensive service agreements. In Display, Applied expects 23 percent in compound annual growth over the same period, led by increases in consumer demand for larger, more life-like displays in the TV and mobile device markets, which are enabled by Applied's leadership in large-area materials engineering.

Applied is committed to investing in attractive growth opportunities and distributing excess cash to shareholders through share repurchases and dividends. The company announced a new share repurchase program authorizing up to an additional $3 billion in repurchases. As of the end of the company's fiscal third quarter, approximately $995 million remained available under the prior authorization.

A replay of the 2017 Analyst Meeting, along with presentations and related materials, will be available on the Applied Materials investor relations website at http://www.appliedmaterials.com/company/investor-relations.