Applied Material (AMAT) and Tokyo Electron (TOYLY) are the two biggest and most important supplier to the semi-conductor industry in the world , making the machines and technology that turns Silicon wafers into Computer Chips.The transaction value between the Applied Material and Tokyo Electron is $ 10 billion.
Merging the number one and number three manufacturers in the industry created giant with a market cap of about $ 3 billion but more than anything its a defensive move.Technical and financial pressure are squeezing margins and profits in a already mature industry.
Applied -TEL will not have only a more robust and comprehensive product line but also greater expertise across a larger number of the process steps involved in semi-conductor manufacturing.
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