Applied Materials

Applied’s competitive edge stems from installed base density, proprietary process know‑how embedded in customers’ recipes, and platform breadth that lets it co‑optimize steps across deposition, etch, cleans, CMP and metrology. This creates high switching costs because qualifying alternative tools risks yield, throughput and production schedules.

Scale enables outsized R&D and a broad chamber library; Vistara increases configuration flexibility and AI‑enabled optimization, while Sculpta adds a new lever in EUV era patterning. These reinforce intangible assets and cost advantages.

Risks to the moat include faster improvement by Chinese toolmakers in etch and deposition and regulatory constraints that could slow adoption or service activity in China.