AMAT held an investor breakfast in conjunction with Semicon West and a firstof-its-kind AI Design Forum in San Francisco. This event is intended to providea broad range of perspectives, connecting those involved in AI in cloud systemproviders, academics, AI startups, design tool companies, systems companies,and semiconductor companies. Gary Dickerson, CEO and Dan Durn, CFO,provided comments to open up the Semicon West experience and answered longtermquestions in a Q&A forum. We provide our thoughts regarding a few keytakeaways below.
AMAT has a broad portfolio to address customer needs
While the concept of big data/AI driving storage/compute demand is nothing new,AMAT stressed that the integration of materials and processes is becoming moreimportant in terms of their ability to service customers. Although cutting edgematerials technology is important, if such materials do not work well with othersparts of the process (AMAT separately mentioned the number of materials couldsee a 10x increase from the past to the future), time to market for a chip is reduced,while cost also increases materially. AMAT sees one of their core competenciesin their ability to integrate processes/materials together, which could give theman advantage vs. competitors against a backdrop of traditional shrinking in chipsslowing. AMAT believes innovations are moving to new materials and structuresrather than just process shrinks.
What drives WFE higher?
When asked about AI’s impact to WFE, AMAT mentioned that the drivers of WFEhave changed over time and suggested that AI is a significant driver of WFE above$50b. Historically, AMAT postulated that initially, WFE was driven mainly by PCs,which shifted in the recent decade to the rise in mobility devices (smartphones,tablets). Along side this rise, volatility in WFE has also decreased. AMAT believesthat AI is one of several drivers for WFE to move higher, while peaks and valleysof WFE are also expected to be more muted i……[德意志银行]