James Dennin, Kapitall: Two of the largest semiconductor supplier companies are merging, and it's a pretty big deal. Applied Materials (AMAT) and Tokyo Electron Ltd (OTC) will be merging their two companies in a $9.39 billion deal.
- The deal combines the largest chip-making equipment manufacturer with a huge overseas rivals.
- It looks like a sign of the rapid consolidation going on throughout the semiconductor industry.
- Companies in this industry are facing increasing scarcity when it comes to finding buyers for the machines they produce.
- But the main problem is that there are now only three companies buying a majority of the parts used in semiconductors.
- Intel (INTC), Taiwan Semiconductor (TSM), and Samsung (OTC:SSNLF) are the big names.
- With the first and third largest companies that supply chip-making equipment now merging, only one other major competitor, ASML Holding (ASML) remains.
2. Intel Corporation ( INTC): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap at $117.58B, most recent closing price at $23.62.
4. KLA-Tencor Corporation ( KLAC): Engages in the design, manufacture, and marketing of process control and yield management solutions for the semiconductor and related nanoelectronics industries. Market cap at $10.15B, most recent closing price at $61.27.
5. Lam Research Corporation ( LRCX): Engages in designing, manufacturing, marketing, and servicing semiconductor processing equipment used in the fabrication of integrated circuits. Market cap at $8.03B, most recent closing price at $49.42.
( List compiled by James Dennin, a Kapitall Writer. Analyst ratings sourced from Zacks Investment Research, all other data sourced from Finviz.)