Applied Materials' (AMAT) CEO Sees More Failures in Semi Equipment Sector
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Applied Materials' (Nasdaq: AMAT) Chairman and CEO, Mike Splinter, is making headlines today following some concerning comments made to a group of reporters and analysts.
The exec said he expects to see more failures in the semiconductor equipment sector given record-low semi orders and demand which still remains extremely weak. Splinter pointed out that while consolidation within the group is needed (in order to take down development costs), integration is "very difficult" as combining technologies across companies is timely and cause conflicts.
Summing it up concisely, Splinter admitted that "The semiconductor equipment industry cannot support the necessary level of R&D without some amount of consolidation. Today there is too much repetition, too much waste in the industry."
As one of the U.S.'s largest Semi companies, the CEO's comments bode negatively for the entire sector. Shares of AMAT are down about 3.4% to $11.66 today. Elsewhere in the sector: Intel (Nasdaq: INTC) is down 1.8%, Marvell (Nasdaq: MRVL) is down 7.6%, Maxim Integrated (Nasdaq: MXIM) is down 3.3% and Texas Instruments (NYSE: TXN) is down 1%.
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