Sources inform “Globes” that Applied Materials (Nasdaq: AMAT) is considering closing down its wafer cleaning business, and laying off dozens of employees. Included in the measure would be the closing down of an Israeli subsidiary, Oramir Semiconductor Equipment, which Applied Materials acquired in June 2001 for $24 million, and which was then merged in its process diagnostics and control (PDC) division. Applied Materials VP and PDC product business group general manager Gilad Almogy manages Oramir, which is currently located in Rehovot. No response from Applied Materials Israel was available as of web posting.
It is believed that if Applied Materials exits the wafer cleaning business, it will initially halt its activity in the wet cleaning segment, and gradually withdraw from the other segments later. Oramir is responsible for both wet cleaning, which uses water or gas, and dry cleaning, in which a laser is employed. Oramir had 27 employees at the time of its acquisition by Applied Materials, which has 1,000 employees in Israel.
The Chicago-based Berean Capital investment bank recently assessed that Applied Materials was considering a gradual exit from the wafer cleaning sector, after having made few, if any, sales of its Oasis Clean system, which it launched last year. Oasis Clean was designed for 0.13-micron devices and below in 300-mm fabs. Applied Materials developed part of the technology for the Oasis Clean wet cleaning system in cooperation with Mitsubishi Chemical. According to Berean Capital, Applied Materials faced stiff competition from Dainippon, FSI, SemiTool, SEZ, TEL, and other providers, and is likely to halt its development of future products in the wafer-cleaning sector.
An Applied Materials spokesperson in the US said in response, “Applied Materials has not discussed future product plans for this market segment nor have we announced that we are re-evaluating current efforts in wet cleaning."
Published by Globes [online] - www.globes.co.il - on September 17, 2003