CCS Consults on the Proposed Merger Between Applied Materials Inc. and Tokyo Electron Limited

(View Media Release in PDF)

1. The Competition Commission of Singapore (“CCS”) is seeking feedback on the proposed merger between Applied Materials Inc. (“AMAT”) and Tokyo Electron Limited (“TEL”), (collectively “the Parties”).

2. CCS received a notification for decision on 20 January 2014 from the Parties with regard to the merger. The notification relates to AMAT and TEL merging in an all-stock transaction to create a yet unnamed company.

3. The notification is made, under section 57 of the Competition Act, in relation to section 54 of the Competition Act which prohibits mergers that have resulted, or may be expected to result, in a substantial lessening of competition within any market in Singapore.

4. CCS understands from the notification that AMAT is active in the production and supply of equipment, services, and software for the manufacture of semiconductor, flat panel display, and photovoltaic products. TEL supplies a wide range of wafer fabrication equipment (“WFE”) used to manufacture semiconductors. TEL also has a flat panel display and photovoltaic production equipment business, and electronic computer components and computer networks businesses. They overlap worldwide in the provision of the following types of products:

(i) Sputtering for bump processing;

(ii) ECD, or “plating” (including Through-Silicon Via (“TSV”));

(iii) ECD for bump processing;

(iv) Silicon etch (including TSV);

(v) Dielectric etch (including bump);

(vi) Clean tools; and

(vii) Plasma Nitridation.

5. The Parties are of the view that the merger, when carried into effect, will not result in a substantial lessening of competition due to the limited product overlaps between the Parties, and limited competition between the Parties for such limited product overlaps, as well as the multitude of existing and potential WFE suppliers who will be able to provide substitutable WFE products to customers and maintain strong competition for WFE products post-merger, amongst other reasons.

Public Consultation

6. CCS is inviting public feedback in relation to the merger.

7. More information on the public consultation can be accessed and downloaded from the CCS website at www.ccs.gov.sg under the section “Public Register and Consultation”. The closing date for submissions is on or before 14 February 2014. If the submission/correspondence contains confidential information, please also provide CCS with a non-confidential version of the submission or correspondence.

About The Competition Commission of Singapore (CCS)

CCS is a statutory board established under the Competition Act (Chapter 50B) on 1 January 2005 to administer and enforce the Act. It comes under the purview of the Ministry of Trade and Industry. The Act empowers CCS to investigate alleged anti-competitive activities, determine if such activities infringe the Act and impose suitable remedies, directions and financial penalties.

For more information, please visit www.ccs.gov.sg.

For media clarification, please contact

Ms Lim Le-Anne
Senior Assistant Director
Strategic Planning Division
Competition Commission of Singapore
Email: lim_le-anne@ccs.gov.sg
DID : 6325 8304 / 9478 8824

Ms Grace Suen
Assistant Director
Strategic Planning Division
Competition Commission of Singapore
Email: grace_suen@ccs.gov.sg
DID:  6325 8216