Applied Materials, the world's largest maker of semiconductor manufacturing equipment, and third-largest Tokyo Electron have agreed to merge. The 2 companies said on Tuesday that they will join forces as early as the second half of 2014. The combined company will hold about a 25-percent share of the global chip machinery market. The 2 firms will establish a holding company, with the chairman from Tokyo Electron and the CEO from Applied Materials. Industry watchers say the chip market is expanding, led by rising demand for smartphones and other communications devices. They say chip machinery makers are trying to keep up with a rapidly evolving industry. The high cost of developing new manufacturing devices is a major challenge. By joining forces, officials of the two firms hope to share their know-how and cut investment costs.

• published: 25 Sep 2013
• views: 4