A Bloomberg report cited sources who said Applied Materials Inc Chief Executive Officer Gary Dickerson would be moving his family from California to Tokyo. His move saw his dedication in closing Applied Materials' takeover deal of Tokyo Electron Ltd. The takeover deal would be his biggest deal to date in his long-term career in the semiconductor industry.
The Santa Clara, California-based semiconductor manufacturer had agreed to acquire Tokyo Electron this week for USD9.39 billion in stock. The deal was regarded as the largest acquisition of a Japanese firm by a foreign company. Dickerson reportedly labored nine months to work out details of the deal and successfully overcame traditional resistance in a country where foreign takeovers are very rare.
The buyout was a move for Applied Materials to stay ahead of a competitive industry where demand for processors had been shifted from machines to mobile gadgets. The semiconductor industry would be feeling the crunch this year as spending of semiconductor equipment would be reduced by 8.5%. Tokyo-based Advanced Research David Rubenstein said, "You're either number one, or you're struggling to survive. The golden years are over. You have consolidation in a mature industry."
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