Case Study 1 - Applied Materials Inc

Appiled Materials Inc.

Applied Materials, Inc. (*Nasdaq: AMAT) is the global leader in nanomanufacturing technology solutions with a broad portfolio of innovative equipment, service and software products for the fabrication of semiconductor chips, flat panel displays, solar photovoltaic cells, flexible electronics and energy efficient glass. At Applied Materials, we apply nanomanufacturing technology to improve the way people live.

Founded in 1967, Applied Materials creates and commercializes the nanomanufacturing technology that helps produce virtually every semiconductor chip and flat panel displays in the world. The company recently entered the market for equipment to produce solar arrays and energy efficient glass. Applied Materials service products improve yield enhancement and increase nanomanufacturing productivity. The company’s vision is to apply nanomanufacturing technology to improve the way people live. Applied Materials also has the mission To lead the nanomanufacturing technology revolution with innovations that transform markets, create opportunities, and offer a cleaner, brighter future to people around the world.

Applied Materials recognizes the critical importance of social responsibility and the need to be a leader in the places that they do business. Through both its core business and community efforts, the company experiences the profound impact that they can have on improving the quality of life in its communities. This company believes by donating their time, energy and resources where they can do the most good, they are collectively acting upon the beliefs that making a positive social contribution is defined not only by who they are, but by what the company does. Applied Materials added an exciting element to its commitment to the environment in 2006 by announcing its entry into the solar photovoltaic equipment market. The company’s solar strategy is to bring significant change to the industry by enabling lower cost-per-watt solutions for solar cell manufacturing —with the goal of making solar power a significant alternative source of global energy. Applied Materials continues to expand its clean energy efforts, with its first solar production line announcement, followed by its purchases of clean, renewable energy and a 1.9 megawatt solar installation.

Among Applied Materials Inc’s corporate social responsibility milestones include the company’s solar strategy where Applied Materials will provide a combination of manufacturing tools, together with technology and process innovations from the flat panel and semiconductor industries, that are expected to enable customers to increase conversion efficiency and yields, helping to lower the overall cost per watt for solar electricity users. The picture below shows the photovoltaic solar panels that Applied Materials Inc will be dealing with.

Applied's solar strategy includes significantly driving down the overall cost-per-watt, ultimately providing increased and more affordable access to solar. Several recent programs worked to raise awareness of solar as a viable renewable energy alternative. One of Applied Materials Inc’s activities towards promoting solar power was partnering with Santa Clara University and The University of Texas at Austin, Applied is supporting solar decathlon teams at each school. The decathlon, which takes place in Washington, D.C. in October, is an international competition between 20 teams that have spent the summer getting ready to compete in designing, building and operating a completely solar-powered house.

The general concept of harnessing solar energy and to use it is shown in the below diagram.

The process starts from solar rays entering the solar panels then going through the inverter and circuit breaker to ultimately produce electricity. For domestic use, consumers will attach solar panels on the roofs and the process will be as what it is stated. A diagram is included to show how solar energy is used to power home appliances.

Other milestones of Applied Materials Inc’s corporate social responsibility activities include by applying creative thinking, philanthropic funding and volunteer power to environmental concerns. Applied Materials demonstrates its commitment to creating a more sustainable future while reducing carbon footprint around the world. Applied was a silver sponsor for the Living Green Environmental Awareness Concert held in Hillsboro, Oregon, on Sept. 8. With a focus on raising awareness of environmental issues, the concert provided the 10,000 attendees with access to educational materials. Concert-goers visited more than 60 booths centered on environmental consciousness and listened to15 featured bands, which all played tributes to the late environmental pioneer and musician John Denver.

Also for the first time, Applied went green during the SEMICON West trade show held in San Francisco, Calif. Partnering with Carbonfund.org, Applied worked to offset carbon emissions caused by the SEMICON booth by purchasing 100 tons of carbon offsets such as renewable energy. Plans are in the works to continue this practice at all upcoming trade shows.In Rehovot, Israel, the Process Diagnostics and Control group celebrated its 10-year anniversary with "Seeds of Growth.” Employees planted a large, organic vegetable garden near the Applied campus. In collaboration with local after-school centers, economically-disadvantaged students will learn how to maintain the garden and harvest its produce.

All in all, Applied Materials Inc has really taken the initiative to contribute to the environment and to the society by being socially responsible. It now has a Solar Strategy to help minimize wastage and costs and also to make it more accessible to consumers at affordable rate. Hence, it is with great hope that local companies can too emulate Applied Material’s footsteps to do their part for the society and the world.