Applied Materials, a global leader in materials engineering solutions, has set a goal of increasing its revenue by more than 55% in fiscal 2024 compared to 2020.


Applied Materials announced at its 2021 investor conference on the 9th that it will help customers dramatically improve semiconductor PPACt (power, performance, area, cost, and time to market).

It also announced plans to generate 70% of its future sales in the service and parts sectors through long-term contracts.

Applied Materials' 2024 financial model base assumptions set a target of increasing revenue by 55% and non-GAAP earnings per share by more than 100% compared to fiscal 2020. The company also announced a commitment to increase semiconductor systems sales by more than 60% and distribute 80-100% of free cash flow to shareholders.

Applied Materials plans to grow its services business by more than 45% by shifting its focus from parts trading and maintenance services to subscription-based comprehensive services, delivering better outcomes for customers from research through production. Leveraging digital services and expanding remote support capabilities using sensors, analytics, and AI are key elements of this service business growth strategy.

The display business is expected to benefit from the proliferation of OLED technology in smartphones, laptops, tablets, and TVs and the growth of the market. Applied Materials plans to increase its display business' average annual operating profit margin to approximately $600 million over the next four years through 2024.

Applied Materials outlined five key inflection points and the need for innovation that will drive sustained growth as it pursues its long-term strategy.

The five major inflection points are: △ At a macro level, the digital transformation of the global economy is accelerating; △ In computing, AI workloads require new architectures based on entirely new types of semiconductors; △ As the traditional Moore's 2D scaling law in semiconductor manufacturing weakens, a new playbook for PPACt is needed to enable continuous improvement of semiconductors and systems; △ The industry must grow in a sustainable and equitable manner; △ Customers are seeking not only good products but also better services, resulting in a shift towards long-term contract-based business models.

Gary Dickerson, Applied Materials Chairman and CEO, said, "At the heart of our strategy is becoming a 'PPACt Enabler.' Applied's broad portfolio and unmatched technology integration capabilities will accelerate customer value creation and ensure Applied maintains a leading position in advanced semiconductors for years to come."