Display Technology Update

Dr. Brian Shieh

CORPORATE VICE PRESIDENT, GENERAL MANAGER

External Use

Safe Harbor Statement

2

This presentation contains forward-looking statements, including those regarding our

industry outlooks, growth opportunities, market positions, products and strategies.

These statements are subject to known and unknown risks and uncertainties that

could cause actual results to differ materially from those expressed or implied in our

current views, including: uncertain global economic and industry conditions; demand

for mobility products; customers’ new technology and capacity requirements; the

concentrated nature of our customer base; Applied’s ability to (i) develop, deliver and

support a broad range of products and expand its markets, (ii) achieve the objectives

of operational initiatives, (iii) obtain and protect IP, and (iv) attract, motivate and retain

key employees; and other risks described in our most recent SEC Form 10-Q. All

forward-looking statements are based on management’s estimates, projections and

assumptions as of July 8, 2013, and Applied undertakes no obligation to update any

forward-looking statements.

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Growing Visual Expectation : Four Key Display Trends

4K TV 8K TV

>600ppi phoneFull HD TV

>326 ppi phone

70” TV

5” Phone

40” TV

3.5” Phone

Mobile TV Ubiquitous

55” TV

4.5” Phone

All Driving Increased Equipment Intensity & Opportunity For Share Gain

SIZE

RESOLUTION

OLED

FORM FACTOR

TODAY

External Use

OLEDHigh-Res LCDStandard LCD

Backlight

Liquid Crystal or

OLED Liquid Crystal Liquid Crystal

Color Filter

LTPS or MOx TFT LTPS TFT

RGB OLED

TFE

Transistor Plane

(Back Plane)a-Si TFT

Front PlaneColor Filter

iPhone5

326ppi

iPhone3

163ppi

Mobile

Device

440ppi

Optimizing Resolution, Power & Form Factor High Value Display Opportunity

LEDLED

External Use

Size & Resolution

CA

PE

X $

/m2

Size, Resolution, OLED, Form Factor Drives Growth

TV

a-Si LCD

MOx-LCDOLED

65”

42”

10

13

20+

# of CVD/PVD per G8.5

Resolution, Battery Life & Form Factor

CA

PE

X $

/m2

LTPS

LCD/OLED

Flexible

OLED

3.5”

5.5”

a-Si

LCD

MOBILITY

8

15

20+

# of CVD/PVD per G6

x

External Use

LCD OLED

MOBILE

HVPs in Advanced Displays : Killer Particle & Uniformity

32” FHD94% yield

55” FHD83% yield

55” 4K2K33% yield

TV

Transistor active area

► Particles > 10x Density Reduction

DEVICE PERFORMANCE & YIELD REQUIREMENTS

► Uniformity 3X improvement

External Use

CVD DVS : Uniformity and Low Defect

Diffuser with HCG

(Hollow Cathode Gradient)

Plasma Uniformity

Control

Demonstrated

Uniformity up to Gen10

Top-Down RPSC(Remote Plasma Source Clean)

Uniform and Efficient

Chamber Clean

Patent

Protected

IEEE

Innovation

Award

External Use

Defect Control

Planar

Full-surface erosion

“Self-Cleaning”

Minimum Nodules

and Re-Deposition

Rotary

Clean Target Erosion over Life

Programmable Magnet Wobble

AlCu Mo ITO IGZO

Open (Spacious)

Architecture

Rotary

Uniform Gas Flow

PVD DVS : Uniformity and Low Defect

Uniformity Control

Planar

Obstructed Gas Flow

Rotating Target

Patent

Protected

PVD Architecture Design Enables Uniformity and Low Defect

External Use

Positioning to Capture Next TFT Wave: Metal Oxide

Metal Oxide TFT HVP

1. Device Stability – Hydrogen in device

2. Mura – Poor Uniformity

3. Yield – Particle

CVD DVS

SiOx Uniformity

Low Hydrogen

PVD DVS

IGZO Uniformity

Pilot

A B C D

R&D/Demo

Customer

CVDPVD

PVD DVS

IGZO Uniformity

Low Particle

GateGI

S/D

ESL

IGZOPass’n

Glass

Applied Others

External Use

Applied Materials Display Products

NEW EQUIPMENT SEGMENTSCORE TFT-LCD EQUIPMENT

CVD

Array

Array

Test

PVD

ArrayPVD

Color Filter

CVD PiVot NAR CF

TV Monitor & Notebook Mobile Phone

+LTPS + Metal

oxide+ Touch

New TV Tablet Smart Phone

CVD MOPiVot MO

NAR TP PVDSmartWeb

ADAPTING

LTPS

Metal

Oxide

OLED

Hi Res

Touch

KPX CVDPivotEBT

+ TFE

CVD TFE

+ Advanced

Test

EBT-HR

INCREMENTAL REVENUE OPPORTUNITIES $240M IN 2016

1

1

1

1

1 1

1Market

Share

External Use

Display Technology inflection creates many

Device Performance and Material

Innovation opportunities

Device Performance and Yield enabled by

Product Differentiation drives

our Share Growth

Leadership in Large Area Precision Materials

Engineering expands our growth opportunities

DISPLAYMomentum for

Profitable

Growth