AMAT

어플라이드 머티리얼즈
APPLIED MATERIALS INC /DE · CIK 6951
AMAT 리스크 변화 알림 받기
이번 보고서
2025 연차보고서
10-K · 기간 말 2025. 10. 26. · 제출 2025. 12. 12.
비교 기준
2024 연차보고서
10-K · 기간 말 2024. 10. 27.
SEC 원문 ↗
1
새 리스크 항목
7
신규 문단
59
수정 문단
66
삭제
-7%
분량 변화
AI 한국어 요약

한 줄 요약

관세·무역분쟁을 독립된 리스크 항목으로 새로 세우고 중국의 희토류 수출통제를 처음 명시했으며, AI 수요 예측의 불확실성과 미국 세법 변경(OBBBA)에 따른 세금 부담을 새로 강조했습니다.

주목할 변화

  • 신규관세·무역분쟁 전용 리스크 항목 신설기존에는 '글로벌 사업 리스크' 목록의 한 줄이었던 관세 문제가 별도 항목으로 올라왔습니다. 미국의 관세 인상과 중국 등의 보복관세를 명시했고, 원가 상승·마진 축소·고객 주문 지연 및 취소 가능성을 구체적으로 적었습니다. ("increases in tariffs, including reciprocal and sector-based tariffs", "cause our customers to delay or cancel orders")
  • 신규중국의 희토류 수출통제 명시2025년 중국 정부가 자사 일부 제품에 쓰이는 희토류의 수출을 통제했고 향후 범위가 넓어질 수 있다는 내용이 관세 항목과 공급망 항목 양쪽에 새로 들어갔습니다. ("Chinese government restrictions on the export of certain rare earth minerals implemented in 2025, which could be expanded in the future")
  • 강화AI 수요의 비중과 예측 불확실성작년에는 AI를 "상대적으로 새로운 수요 동인"으로 표현했지만, 올해는 "중요한 수요 동인"으로 격상했습니다. 동시에 AI 관련 투자의 시기와 규모가 크게 바뀔 수 있다는 경고를 추가했습니다. ("AI... are a significant demand driver", "the expected timing and amount of investments related to AI can change significantly")
  • 신규미국 세법(OBBBA)으로 인한 세금 부담2025년 7월 제정된 OBBBA 때문에 법인 최저한세(CAMT) 세액공제 이연법인세자산의 활용 시점을 예측할 수 없게 됐다고 밝혔습니다. 이에 따라 전액 평가충당금을 쌓았고, 그 결과 2025 회계연도 유효세율이 올라갔습니다. ("recorded a full valuation allowance against the CAMT credit deferred tax asset, which increased our effective tax rate")
  • 강화인수합병(M&A) 관련 규제·집행 리스크사전 신고하지 않은 거래에 대해 거래 종결 후에도 당국이 조사할 수 있다는 점, 피인수 회사의 수출입 통제 절차 미비, 정부 집행 조치가 위험 요인으로 추가됐습니다. 소송 관련 항목에도 반부패와 정부계약 요건 준수가 새로 들어갔습니다. ("post-closing investigations of non-notified transactions", "trade control processes or programs")
  • 강화양자컴퓨팅·AI 기반 사이버공격양자컴퓨팅이 현재의 암호화 표준을 무력화할 수 있다는 경고가 새로 생겼습니다. 지정학적 사이버 위험 사례에는 중동 분쟁이 추가됐습니다. AI 사업 활용 항목에는 외부 AI 제공업체에 대한 의존 리스크도 새로 들어갔습니다. ("Advances in quantum computing have the potential to undermine current encryption standards")
  • 완화부품 부족 리스크 표현 약화수요 급증에 따른 부품 부족이 "과거에도 영향을 줬고 앞으로도 계속 줄 수 있다"던 표현이 "줄 수 있다" 수준으로 낮아졌습니다. '디지털 전환 가속에 따른 부족 심화' 문단도 삭제됐습니다. ("have adversely impacted, and may continue to adversely impact" → "may adversely impact")
  • 완화싱가포르 세제 혜택 연장, 일본 비중 축소2025 회계연도 만료 예정이던 싱가포르 감면세율에 대해, 2030 회계연도부터 순차 만료되는 추가 감면이 부여됐다고 밝혔습니다. 또한 고객의 지역 집중 및 해외 매출 국가 목록에서 일본이 빠졌습니다. ("additional conditional reduced tax rates in Singapore that expire beginning in fiscal 2030")

읽는 법

이번 개정의 중심은 수출통제 위주였던 무역 리스크가 관세, 보복조치, 희토류 공급까지 넓어졌다는 점입니다. 판매 측면과 원재료 조달 측면이 동시에 압박받는 구조로 바뀐 것입니다. AI를 핵심 수요 동인으로 인정하면서도 투자 시기의 변동성을 함께 경고한 만큼, 향후 실적 발표에서 AI 관련 주문의 지속성과 관세 비용 전가 여부를 함께 확인해 볼 만합니다. 세율 측면에서는 OBBBA로 인한 평가충당금이 이미 반영됐고 향후 조정될 수 있다고 밝혔으므로, 유효세율 변화도 주의 깊게 볼 필요가 있습니다.

원문 비교
  1. 새 리스크 항목
    We are exposed to risks and uncertainty related to changes in trade policies, and increased tariffs and trade disputes.
  2. 신규We are exposed to risks and uncertainty related to changes in trade policies, and increased tariffs and trade disputes.
    Our business, financial condition and results of operations may be adversely affected by uncertainty and changes in trade policies, including tariffs, and trade disputes between the United States and other countries. The United States has announced changes to its trade policy, including increased tariffs on imports. These actions have caused substantial uncertainty and have resulted in retaliatory measures, including new tariffs on U.S. goods imposed by China and other countries. Some of these actions have been followed by announcements of limited exemptions and temporary pauses and trade frameworks with certain countries.
  3. 신규We are exposed to risks and uncertainty related to changes in trade policies, and increased tariffs and trade disputes.
    A significant number of our customers and suppliers are located outside of the United States. Increases in tariffs increase our costs and can negatively impact our margins and reduce the competitiveness of our products due to the increase in the cost of importing materials, parts and components used in manufacturing our products. Tariffs can also increase supply chain complexity and may make it more difficult to purchase necessary equipment and supplies to manufacture our products. Increases in tariffs, including reciprocal and sector-based tariffs, also increase the cost to our customers of importing our products, which could harm customer demand for our products. Uncertainty or volatility with respect to tariffs and trade disputes may also make it difficult for us and our customers and suppliers to make and execute business and capital equipment investment plans; lead to global or regional inflation and economic recession and reduce demand for semiconductor chips and electronic devices; cause our customers to delay or cancel orders or negatively impact our competitive position; impede our ability to purchase materials, including critical materials and minerals, and disrupt supply chain and logistics. For example, in 2025 the Chinese government implemented export controls on the export of rare earth minerals that are used in certain of our products and may implement additional controls in the future. We may take actions to mitigate the impact of increases in tariffs and changes in trade policies, but there can be no assurance that we will be successful, and any such actions could result in additional costs, manufacturing delays or other difficulties, as well as additional risks, and may not be effective. Any or all of these factors may have a material and adverse impact on our business, financial condition and results of operations.
  4. 신규Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.
    •cybersecurity incidents affecting our supply chain;
  5. 신규Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.
    •impacts of natural disasters, extreme and chronic weather events, regional or global health epidemics, or other events beyond our control.
  6. 신규Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.
    Any of these events impacting our supply chain could affect our ability to meet our customers’ demand, result in higher costs to us and have an adverse effect on customer relationships and our business, financial condition and results of operations.
  7. 신규We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    •the importance of specialty markets (such as internet of things, communications, automotive, power and sensors) that use process technologies that have a low barrier to entry;
  8. 수정The industries we serve can be volatile and difficult to predict.
    The industries in which we operate, including the global semiconductor industry, have historically been cyclical and are subject to volatility in customer demand. Factors that impact demand Demand for our products and services include is impacted by technology inflections and advances in fabrication processes, new and emerging technologies and market drivers, such as demand for high-bandwidth memory and other forms of advanced packaging and technologies related to artificial intelligence and data center computing, production capacity relative to demand for semiconductor chips and electronic devices, end-user demand, the timing of customers’ investment in new or expanded fabrication plants, customers’ capacity utilization, production volumes, access to affordable capital, business and consumer buying patterns and general economic and political conditions. Artificial intelligence (AI) and technologies related to AI are a significant demand driver for the industries we serve. AI is evolving rapidly and the expected timing and amount of investments related to AI can change significantly. As a result, it is difficult to accurately forecast demand for our products related to AI. Changes in demand can affect the timing and amounts of customer investments in technology and manufacturing equipment and can significantly impact our operating results. The amount and mix of our customers’ capital equipment spending between different products and technologies can also significantly impact our operating results.
  9. 수정We are exposed to risks associated with an uncertain global economy.
    Uncertain Our business and the industries in which we operate can be impacted by uncertain or adverse economic and business conditions, including uncertainties and volatility in the financial markets, national debt, fiscal or monetary concerns, inflation and changes in interest rates, bank failures, tariffs and trade policies and economic recession, could materially and adversely impact our operating results. recession. Decreases in spending and demand These conditions have caused, and may in the future cause, our customers to push out, delay, cancel or refrain from purchasing our equipment or services, which could negatively impact demand for our products and services, reduce our backlog, backlog and increase our inventory, and materially and adversely impact our operating results. inventory. Customers may also scale back operations, exit businesses, merge with other manufacturers, or file for bankruptcy, which can reduce our revenue and result in additional inventory or bad debt expense. Other equipment manufacturers may also consolidate or form strategic alliances, which could adversely affect our ability to compete.
  10. 수정We are exposed to risks associated with an uncertain global economy.
    These conditions make it more difficult to accurately forecast operating and financial results and make business and investment decisions. We may be required to implement additional cost reduction efforts, including restructuring activities, which may adversely impact our ability to capitalize on opportunities. Even during periods of economic uncertainty or lower demand, we must continue to invest in research and development and maintain a global business infrastructure to compete effectively and support our customers, which can have a negative impact on our operating results. customers. The consequences of these conditions could have an adverse effect on our business, financial condition and results of operations.
  11. 수정We are exposed to risks associated with an uncertain global economy.
    The risks to our Our investment portfolio is subject to general credit, liquidity, market and interest rate risks, which may be exacerbated if financial market conditions deteriorate due to by rising inflation, rising interest rates, bank failures or economic recession and the value and liquidity of the investment our portfolio and returns on pension assets could be negatively impacted and lead to impairment charges. If We also maintain cash balances in various bank accounts globally and if any of these financial institutions become insolvent, it could limit our ability to access our cash in the affected accounts, which could and affect our ability to manage our operations.
  12. 수정We are exposed to the risks of operating a global business.
    We have product development, engineering, manufacturing, sales and other operations distributed throughout many countries, and some of our business activities are concentrated in certain geographic areas. In fiscal 2024, 2025, approximately 86% 89% of our net revenue was to customers in regions outside the United States. As a result of the global nature of our operations, we are subject to a number of factors that could have an adverse impact on our business, financial condition and results of operations. •political These factors include global political and social attitudes, laws, rules, conditions, such as policies or regulations and policies within countries, including in China, the United States, States and countries in Europe and Asia, that favor domestic companies over non-domestic companies, including efforts to promote the development and growth of local competitors and reduce dependence on foreign semiconductor equipment and manufacturing capabilities through policies and financial incentives; to us, or regarding national, commercial or security issues. Other factors include geopolitical turmoil, acts of war or social unrest; our ability to maintain appropriate business processes, procedures and internal controls in our geographically diverse operations; delays or restrictions on personnel travel and in shipping materials or products; our ability to develop relationships with local customers, suppliers and governments; performance of our geographically diverse third-party providers; impacts of regional or global health epidemics, natural disasters and extreme and chronic weather events; fluctuations in interest rates and currency exchange rates; as well as other factors discussed in this Risk Factors section. Any of these factors may have an adverse impact on our business and manufacturing operations or demand for our products and services, and our performance and results of operations may be adversely affected.
  13. 수정Global trade issues and changes in and uncertainties with respect to trade policies and export regulations, including import and export license requirements, trade sanctions, tariffs and international trade disputes, have adversely impacted and could further adversely impact our business and operations, and reduce the competitiveness of our products and services relative to local and global competitors.
    A majority of our products and services are delivered to customers in jurisdictions outside of the United States, including China, Taiwan, Korea Taiwan and Japan. Korea. We also purchase a significant portion of equipment and supplies from suppliers outside of the United States. There is inherent risk, based on the complex relationships among the United States and the countries in which we conduct our business, that political, diplomatic and national security factors can lead to global trade restrictions and changes in trade policies and export regulations that affect the semiconductor industry. The United States and other countries have imposed and may continue to impose new trade restrictions and export regulations, have levied tariffs and taxes on certain goods, goods and could significantly increase or impose new tariffs on a broad array of goods. Trade restrictions and export regulations, or increases in increased or new tariffs and additional taxes, including any retaliatory measures, can negatively impact end-user demand and customer investment in semiconductor equipment, increase our supply chain complexity and our manufacturing costs, decrease margins, reduce the competitiveness of our products, or restrict our ability to sell products, provide services or purchase necessary equipment and supplies, any or all of which could have a material and adverse effect on our business, results of operations, or financial condition.
  14. 수정Global trade issues and changes in and uncertainties with respect to trade policies and export regulations, including import and export license requirements, trade sanctions, tariffs and international trade disputes, have adversely impacted and could further adversely impact our business and operations, and reduce the competitiveness of our products and services relative to local and global competitors.
    For example, certain international sales depend on our ability to obtain export licenses, and our inability to obtain such licenses has limited and could further limit our markets and negatively impact our business. Over the past several years, the U.S. government announced additional export regulations for U.S. semiconductor technology sold in China, including wafer fabrication equipment and related parts and services, with disparate impact on companies in different jurisdictions, which have limited the market for certain of our products and services, adversely impacted our revenues and increased our exposure to foreign and Chinese domestic competition. The U.S. Department of Commerce has promulgated regulations expanding expanded export license requirements for U.S. companies that sell certain products or provide certain services to entities in China whose actions or functions are intended to support military end uses, eliminated certain export license exceptions that applied to for exports of certain items to China, added certain Chinese companies to its “Entity List,” making those companies subject to additional licensing requirements, and expanded licensing requirements for exports to China of items for use in the development or production of integrated circuits and certain technologies. These regulations require us to obtain additional export licenses to supply certain of our products or provide services to certain customers in China. Obtaining export licenses may be difficult and time-consuming, and there is no assurance we will be issued licenses on a timely basis or at all. Our inability to obtain such licenses could limit our sales in China, may cause us to be displaced by foreign and Chinese domestic companies and adversely affect our results of operations. The implementation and interpretation of these complex rules and other regulatory actions taken by the U.S. government are uncertain and evolving and may make it more challenging for us to manage our operations and forecast our operating results. The U.S. and other governments may promulgate new or additional export licensing or other requirements that have the effect of further limiting our ability to provide certain products and services to customers outside the U.S., including China. The U.S. government may also revise or expand existing requirements or issue guidance clarifying the scope and application of these requirements, which could change the impact of these rules on our business and manufacturing operations. The U.S. government may also continue to add customers to its “Entity List” or List,” promulgate additional restrictions, or take measures that could disrupt our product shipments or the provision of services to certain customers. These and other potential future regulatory changes could materially and adversely affect our business, results of operations or financial condition.
  15. 수정We are exposed to risks associated with a highly concentrated customer base.
    A relatively limited number of customers account for a substantial portion of our business. As a result, the actions of even a single customer or export regulations that apply to customers in certain countries, such as those in China, have exposed and can further expose our business and operating results to greater volatility. Our customer base is geographically concentrated, particularly in China, Taiwan and Korea, and export regulations that apply to customers in certain countries, such as those in China, have exposed and can further expose our business and operating results to greater volatility. The geographic concentration of our customer base could shift over time as a result of changes in technology and competitive landscape, as well as government policy and incentives to develop regional semiconductor industries. The mix and type of customers, customers and sales to any single customer, including as a result of changes in government policy, have varied and may vary significantly from quarter to quarter and from year to year, and have had, over time and may continue to have, have a significant impact on our operating results. Our products are configured to customer specifications, and changing, rescheduling or canceling orders may result in significant, non-recoverable costs. If customers do not place orders, or they substantially reduce, delay or cancel orders (including as a result of uncertain or adverse economic conditions, our inability to fulfill orders due to export regulations, shortage of parts, transportation capacity/interruptions or any other reason), orders, we may not be able to replace the business, which may have a material and adverse impact on our results of operations and financial condition. The concentration of our customer base increases our risks related to the financial condition of our customers, and the deterioration in financial condition of a single customer or the failure of a single customer to perform its obligations could have a material and adverse effect on our results of operations and cash flow. To the extent our customers experience liquidity constraints, we may incur bad debt expense, which may have a significant impact on our results of operations. Major customers may seek pricing, payment, intellectual property-related, or other commercial terms that are less favorable to us, which may have a negative impact on our business, cash flow, revenue and gross margins.
  16. 수정Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.
    Our business depends on our timely supply of products and services to meet the changing requirements of our customers, which depends in part on the timely delivery of parts, materials and services from suppliers and contract manufacturers. Increases Volatility in demand for our products and worldwide demand for semiconductor chips and electronic devices can impact our suppliers’ ability to meet our demand requirements, requirements and have has in the past resulted in, and may from time to time result in, in a shortage of parts, materials and services needed to manufacture our products. Such These shortages, as well as delays in and unpredictability of shipments due to transportation interruptions, have may adversely impacted, and may continue to adversely impact, impact our manufacturing operations and our ability to meet customer demand. Supply chain constraints may increase costs of logistics and parts for our products and may cause us to pass on increased costs to our customers, which may lead to reduced demand for our products and materially and adversely impact our operating results. products. Supply chain disruptions have in the past caused, and may from time to time cause, delays in our equipment production and delivery schedules, which can lead to our business performance becoming significantly dependent on quarter-end production and delivery schedules, and could have an adverse impact on our operating and financial results. schedules.
  17. 수정Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.
    •political instability, social unrest, terrorism, acts of war or other geopolitical turmoil, such as the conflict in the Middle East, turmoil in locations where we or our customers or suppliers have manufacturing, research, engineering or other operations;
  18. 수정Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.
    •volatility in the availability and cost of parts, commodities, energy and shipping related to our products, including increased costs due to rising inflation or interest rates or other market conditions; conditions, as well as uncertainties arising from the imposition of tariffs and any retaliatory measures;
  19. 수정Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.
    •limited availability of critical materials and minerals, including due to Chinese government restrictions on the export of certain rare earth minerals implemented in 2025, which could be expanded in the future, and limited feasible alternatives to materials subject to existing or proposed regulations to limit their use (such as hydrofluorocarbons and per- and polyfluoroalkyl substances), which are found in parts, components, process chemicals and other materials supplied to us or used in the manufacturing or operations of our products; and
  20. 수정Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.
    Transferring If a supplier fails to meet our requirements concerning quality, cost, intellectual property protection or other performance factors, or does not meet regulatory requirements applicable to our supply chain, we may transfer our business to alternative suppliers sources, which could result in manufacturing delays, additional costs or other difficulties, and may impair our ability to protect, enforce and extract the full value of our intellectual property rights, rights and the intellectual property rights of our customers and other third parties.
  21. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    We are exposed to various factors that impact the industries in which we operate. operate, including factors specific to the semiconductor industry.
  22. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    The global semiconductor, display and related industries in which we operate are characterized by factors that impact demand for and the profitability of our products and services and our operating results, including: results. The largest proportion of our consolidated net revenue and profitability is derived from our Semiconductor Systems segment’s sale of a wide range of equipment used to fabricate semiconductor chips to the global semiconductor industry, chips, and a majority of the revenues revenue of Applied Global Services is from sales to semiconductor manufacturers. The display industry is industries in which we operate, including the semiconductor industry, are characterized by factors particular to this industry these industries that impact demand for and the profitability of our display products and services, including:
  23. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    •the nature, timing and degree of visibility of changes •changes in demand for semiconductor chips and electronic devices, including those related to fluctuations in consumer buying patterns tied to general economic or geopolitical conditions, seasonality or the introduction of new products, and the effects of these changes on customers’ businesses and on demand for our products;
  24. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    •increasing capital •capital requirements for building and operating new fabrication plants and customers’ ability to raise the necessary capital;
  25. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    •trade, regulatory, tax or government incentives impacting the timing of customers’ investment in new or expanded fabrication plants; plants and semiconductor research and development;
  26. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    •the cost and complexity for semiconductor manufacturers customers to move more technically advanced capability and smaller geometries from product design to volume manufacturing, and the impact on investment in capital equipment;
  27. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    •differences •changes in growth rates among the semiconductor, display semiconductor and other industries in which we operate;
  28. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    •semiconductor manufacturers’ •manufacturers’ ability to reconfigure and re-use equipment, resulting in diminished need to purchase new equipment and services from us, and challenges in providing parts for reused equipment;
  29. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    •the importance of the availability of spare parts to maximize the time that customers’ systems are available for production;
  30. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    •the importance to customers of system •system reliability and productivity and the effect on demand for fabrication systems as a result of their increasing productivity, device yield and reliability;
  31. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    •competitive factors that make it difficult to enhance position, including total cost of manufacturing system ownership and other challenges in securing development-tool-of-record (DTOR) and production-tool-of-record (PTOR) positions with customers;
  32. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    •the increasing fragmentation of semiconductor markets, leading certain markets to become too small to support the cost of a new fabrication plant, while others require less technologically advanced products; the continuing importance of specialty markets (such as internet of things, communications, automotive, power and sensors) that use process technologies that have a low barrier to entry; and
  33. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    •the increasing role for and complexity of software in our products; and
  34. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    •the focus on reducing energy usage and improving the environmental impact and sustainability associated with manufacturing operations, and the availability of adequate and reliable sources of energy. energy; and
  35. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    •the importance of advanced packaging to artificial intelligence AI computing.
  36. 수정We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.
    If we do not effectively address these factors, accurately forecast and allocate appropriate resources and investment towards addressing key technology changes and inflections, successfully develop and commercialize products to meet demand for new technologies, and effectively address industry trends, our business and results of operations may be materially and adversely impacted.
  37. 수정The industries in which we operate are highly competitive and subject to rapid technological and market changes.
    We operate in a highly competitive environment in which innovation is critical, and our future success depends on many factors, including the development of new technologies and effective technologies, commercialization and customer acceptance of our equipment, services products and related products, services, and our ability to increase our position in our current markets, markets and expand into adjacent and new markets, and optimize operational performance. markets. The development, introduction and support of products in a geographically diverse and competitive environment requires collaboration with customers and other industry participants, which has grown more complex and expensive over time. New or improved products may entail higher costs, costs and longer development cycles, lower profits and may have unforeseen product design or manufacturing defects. To compete successfully, we must:
  38. 수정The industries in which we operate are highly competitive and subject to rapid technological and market changes.
    •identify and address technology inflections, market changes, competitor innovations, new applications, customer requirements and end-use demand in a timely and effective manner; demand;
  39. 수정The industries in which we operate are highly competitive and subject to rapid technological and market changes.
    •complete our new Equipment and Process Innovation and Commercialization Center and other major infrastructure projects on schedule and on budget, and realize the anticipated benefits of those projects;
  40. 수정The industries in which we operate are highly competitive and subject to rapid technological and market changes.
    •differentiate our products from those of competitors, meet customers’ performance specifications (including those related to energy consumption specifications, and environmental impact more broadly), appropriately price products, successfully commercialize our products and achieve market acceptance;
  41. 수정The industries in which we operate are highly competitive and subject to rapid technological and market changes.
    •improve the productivity of capital invested in R&D research and development activities;
  42. 수정The industries in which we operate are highly competitive and subject to rapid technological and market changes.
    •accurately forecast demand, work with suppliers and meet production schedules for our products; products, improve our manufacturing processes and achieve cost efficiencies across product offerings; and
  43. 수정The industries in which we operate are highly competitive and subject to rapid technological and market changes.
    •implement changes in our design engineering methodology to reduce material costs and cycle time, increase commonality of platforms and types of parts used in different systems, time and improve product life cycle management.
  44. 수정We are exposed to risks related to government incentives and other agreements that may involve government entities.
    From time to time time, we enter into agreements with government entities for grants, tax benefits and other incentives, or other funding related to our investment, research and development and production activities, activities or for sale of our products to government entities or government-funded programs. These agreements typically include terms that are not common in similar agreements with non-governmental entities, including representations and warranties, covenants and certifications, and record-keeping, accounting, audit, intellectual property rights-sharing, information handling, supply chain management, headcount, security, disclosure and other requirements. These agreements may also require us to achieve or maintain certain levels of investment, capital spending and performance milestones. Compliance with these requirements may add complexity to our operations and increase our costs, and a failure to comply could result in cancelation of agreements or transactions, investigations, civil and criminal penalties, forfeiture of profits, reduction, termination or clawback of any funding, suspension or debarment from doing business with the government, or other penalties, any of which could have a material and adverse effect on our business, financial condition and results of operations.
  45. 수정We are exposed to factors specific to the display industry.
    The We are a supplier to the global display industry industry, which has experienced considerable volatility in capital equipment investment levels, due in part to the limited number of display manufacturers, the concentrated nature of end-use applications, production capacity relative to end-use demand, the speed of adopting new technologies into production, and panel manufacturer profitability. Industry growth depends primarily on consumer demand for increasingly larger and more advanced TVs, and on demand for advanced smartphones and mobile device displays, which demand is highly sensitive to cost and improvements in technologies and features. Demand for and the profitability of our display products and services is impacted by the foregoing industry factors, as well as the introduction of and rate of transition to new types of display technologies, our ability to anticipate and adapt to technology transitions and inflections, and the expansion of display manufacturing facilities in China. If we do not successfully develop and commercialize products to meet demand for new and emerging display technologies, or if industry demand for display fabrication equipment and technologies does not grow, our business and our operating results may continue to be adversely impacted.
  46. 수정We are exposed to risks related to the use of AI by us and our competitors.
    We are exposed to risks related to the use of artificial intelligence AI by us and our competitors.
  47. 수정We are exposed to risks related to the use of AI by us and our competitors.
    We are increasingly incorporating artificial intelligence AI capabilities into the development of technologies and technologies, our business operations, operations and into our products and services. Artificial intelligence AI technology is complex and rapidly evolving, evolving and may subject us to significant competitive, legal, regulatory, operational and other risks. The implementation of artificial intelligence AI can be costly, and there is no guarantee that our use of artificial intelligence AI will enhance our technologies, benefit our business operations, or produce products and services that are preferred by our customers. Our competitors may be more successful in their artificial intelligence AI strategy and develop superior products and services with the aid of artificial intelligence AI technology. Additionally, artificial intelligence AI algorithms or training methodologies may be flawed, and datasets may contain irrelevant, insufficient or biased information, which can cause errors in outputs. This may give rise to legal liability, damage our reputation, and materially harm our business. The use of artificial intelligence AI in the development of our products and services could also cause loss of intellectual property, as well as subject us to risks related to intellectual property infringement or misappropriation, data privacy and cybersecurity. We also utilize third-party providers of AI capabilities, and our ability to implement AI successfully in our business operations relies on our continued access to third-party providers and safeguards implemented by them. Additionally, artificial intelligence AI technology may also create ethical issues, which could impair market adoption of such technology and impair demand for our products and services. Furthermore, the United States and other countries may adopt laws and regulations related to artificial intelligence. AI. Such These laws and regulations could cause us to incur greater compliance costs and limit the use of artificial intelligence AI in the development of our products and services. Any failure or perceived failure by us to comply with such these regulatory requirements could subject us to legal liabilities, damage our reputation, or otherwise have a material and adverse impact on our business.
  48. 수정We are exposed to risks related to protection and enforcement of intellectual property rights.
    Our success depends on the protection of our technology using patents, trade secrets, copyrights and other intellectual property rights. Infringement or misappropriation of our intellectual property rights, such as the manufacture or sale of equipment or spare parts that use our technology without authorization, could result in uncompensated lost market and revenue opportunities. Detecting and preventing misuse of our intellectual property is difficult and costly, and we cannot be certain that our protective measures will be successful. Our ability to enforce our intellectual property rights is subject to litigation risks and uncertainty as to the protection and enforceability of those rights in some countries. If we seek to enforce our intellectual property rights, we Enforcement efforts may be subject to claims that those our rights are invalid or unenforceable, unenforceable and others may seek result in counterclaims against us, which could have a negative impact on our business. If we are unable to enforce and protect intellectual property rights, or if they are circumvented, rendered obsolete, invalidated by the rapid pace of technological change, or stolen or misappropriated by employees or third parties, it could have an adverse impact on our competitive position and business. Changes in intellectual property laws or their interpretation may impact our ability to protect and assert our intellectual property rights, increase costs and uncertainties in the prosecution of patent applications or related enforcement actions and diminish the value and competitive advantage conferred by our intellectual property assets.
  49. 수정We are exposed to risks related to protection and enforcement of intellectual property rights.
    From time to time third parties have asserted, and may continue to assert, intellectual property claims against us and our products. Claims that our products infringe the rights of others, whether or not meritorious, can be expensive and time-consuming to defend and resolve, and may divert the efforts and attention of management and personnel. The inability to obtain rights to use third-party intellectual property on commercially reasonable terms could have an adverse impact on our business. We may face claims based on the theft or unauthorized use or disclosure of third-party trade secrets and other confidential business information. Any such of these incidents and claims could severely harm our business and reputation, result in significant expenses, harm our competitive position, and prevent us from selling certain products, all of which could have a material and adverse impact on our business and results of operations.
  50. 수정We are exposed to cybersecurity threats and incidents.
    In the conduct of our business, we collect, use, transmit, store and otherwise process data using information technology systems, including systems owned and maintained by us or our third-party providers. These data include confidential information and intellectual property belonging to us or our customers or other business partners, and personal information of individuals. All information technology systems are subject to disruptions, outages, failures and security breaches or incidents, which may be caused by a variety of internal and external factors. We and our third-party providers have experienced, and expect to continue to experience, cybersecurity incidents. Cybersecurity incidents may range from physical attacks on our computer system or network infrastructure, to employee or contractor error or misuse or unauthorized use of information technology systems or confidential information, to individual attempts to gain unauthorized access to these information systems, to sophisticated cybersecurity attacks, or advanced persistent threats, any of which may target or impact us directly or indirectly through our third-party providers and global supply chain. Threat actors may also attempt to influence employees, suppliers and other third-party providers, or customers to disclose sensitive information in order to gain access to our, our customers’ or business partners’ data. Cybersecurity attacks are increasing in number and the attackers are increasingly organized and well-financed, or at times supported by state actors. Geopolitical tensions or conflicts, such as Russia’s invasion of Ukraine and increasing Ukraine, tension with China, China and conflict in the Middle East may create a heightened risk of cybersecurity attacks. The techniques used by threat actors to identify vulnerabilities and craft cybersecurity attacks change frequently and may increasingly involve the use of new technologies, including AI and quantum computing. Artificial intelligence AI and deepfake technologies could be used to attack information systems by creating more effective phishing emails or social engineering and by exploiting vulnerabilities in electronic security programs utilizing false image or voice recognition. Vulnerabilities, technical errors and other risks may be introduced through the use of artificial intelligence AI by us, our customers, suppliers and other business partners and third-party providers, or through the use of third-party hardware and software. Advances in quantum computing have the potential to undermine current encryption standards and may allow threat actors to circumvent existing protective measures. Although we are not aware of any cybersecurity incidents impacting our information systems that have been determined to have a material impact on us to date, we continue to devote significant resources to network security, data encryption, encryption and other measures to protect our systems and data from unauthorized access or misuse, and we may be required to expend greater resources in the future, especially in the face of evolving and increasingly sophisticated cybersecurity threats and laws, regulations, and other actual and asserted obligations to which we are or may become subject relating to privacy, data protection, and cybersecurity. future. We may be unable to anticipate, prevent, prevent or remediate future attacks, vulnerabilities, breaches, or incidents, and in some instances instances, we may be unaware of vulnerabilities or cybersecurity breaches or incidents or their magnitude and effects, particularly as attackers are increasingly able to circumvent controls and remove forensic evidence. Cybersecurity incidents, including cybersecurity incidents on third-party provider networks, may result in business disruption; delay in the development and delivery of our products; disruption of our manufacturing processes, internal communications, interactions with customers and suppliers and processing and reporting financial results; the theft or misappropriation of intellectual property; corruption, loss of, or inability to access (e.g., through ransomware or denial of service) confidential information and critical data (i.e., that of our company and our third-party providers and customers); reputational damage; private claims, demands, and litigation or regulatory investigations, enforcement actions, or other proceedings related to contractual or regulatory privacy, cybersecurity, data protection, protection or other confidentiality obligations; diminution in the value of our investment in research, development and engineering; and increased costs associated with the implementation of cybersecurity measures to detect, deter, protect against, against and recover from such these incidents. Our efforts to comply with and changes to laws, regulations and contractual and other actual and asserted obligations concerning privacy, cybersecurity and data protection, including developing restrictions on cross-border data transfer and data localization, could result in significant expense, and any actual or alleged failure to comply could result in inquiries, investigations and other proceedings against us by regulatory authorities or other third parties. Customers and third-party providers increasingly demand rigorous contractual provisions regarding privacy, cybersecurity, data protection, confidentiality and intellectual property, which may increase our overall compliance burden.
  51. 수정We are exposed to risks associated with business combinations, acquisitions, strategic investments and divestitures.
    •requirements imposed by government regulators in connection with their review of a transaction, including post-closing investigations of non-notified transactions, which may include, among other things, divestitures and restrictions on the conduct of our existing business or the acquired business;
  52. 수정We are exposed to risks associated with business combinations, acquisitions, strategic investments and divestitures.
    •inadequacy or ineffectiveness of an acquired company’s internal financial controls, disclosure controls and procedures, cybersecurity, privacy policies and compliance programs, trade control processes or programs, or environmental, health and safety, anti-corruption, human resource, resource or other policies or practices;
  53. 수정We are exposed to risks associated with business combinations, acquisitions, strategic investments and divestitures.
    •the risk of litigation litigation, government enforcement actions or claims associated with a proposed or completed transaction;
  54. 수정We are exposed to risks associated with business combinations, acquisitions, strategic investments and divestitures.
    We may seek to divest portions of our business that are not deemed to fit with our strategic plan. Divestitures involve additional risks and uncertainties, such as our ability to sell such these businesses on satisfactory at a price and on terms that are satisfactory and in a timely manner, manner or at all, disruption to other parts of the businesses and distraction of management, allocation of internal resources that would otherwise be devoted to completing strategic acquisitions or other strategic projects or initiatives, loss of key employees or customers, loss of access by retained business units to critical intellectual property or other assets transferred with the divested business, exposure to unanticipated liabilities or ongoing obligations to support the businesses following such divestitures, these divestitures and other adverse financial impacts.
  55. 수정The ability to attract, retain and motivate key employees is vital to our success.
    Our success depends in large part on our ability to attract, retain and motivate qualified employees and leaders with the necessary expertise and capabilities, representing diverse backgrounds and experiences. Achieving this objective may be difficult due to many factors, including fluctuations in global economic and industry conditions, management or organizational changes, ongoing competition for talent, the availability of qualified employees, the ability to obtain necessary authorizations for workers to provide services outside their home countries, challenges in hiring and integrating workers in different countries, the attractiveness of our compensation and benefit programs, our career growth and development opportunities, opportunities and our employment policies. If we are unable to attract, retain and motivate qualified employees and leaders, we may be unable to fully capitalize on current and new market opportunities, which could adversely impact our business and results of operations. The loss of knowledgeable and experienced employees may result in unexpected costs, reduced productivity or difficulties with respect to internal processes and controls.
  56. 수정We operate in jurisdictions with complex and changing tax laws.
    There have been a number of enacted and proposed changes in the tax laws that could have a material impact on our provision for income taxes and effective tax rate. An increase in our provision for income taxes and effective tax rate could, in turn, have a material and adverse impact on our results of operations and financial condition. For example, several various countries where we do business have enacted or plan to enact new tax laws to implement the global minimum tax regimes based on the Organization for Economic Cooperation and Development (“OECD”) Base Erosion and Profit Shifting Project. Project, and where enacted, the rules began to be effective in fiscal 2025. Additionally, on July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act (OBBBA). Key tax provisions of the OBBBA are designed to accelerate tax deductions, but that may have a detrimental impact on our ability to use certain deferred tax assets. For example, as a result of the acceleration of certain tax deductions under the OBBBA, we are unable to forecast utilization of our existing corporate alternative minimum tax (CAMT) credit deferred tax asset. We have recorded a full valuation allowance against the CAMT credit deferred tax asset, which increased our effective tax rate and provision for income taxes in fiscal 2025. The amount of the valuation allowance may be adjusted in future quarters if estimates of our future taxable income change. We continue to monitor developments and evaluate the impact, if any, of enacted and proposed changes in the tax laws on our results of operations and cash flows. The adoption and effective dates of changes in the tax laws vary by country and could increase tax complexity and uncertainty and may adversely affect our provision for income taxes in future years.
  57. 수정We operate in jurisdictions with complex and changing tax laws.
    We have been granted additional conditional reduced tax rates in Singapore that expire beginning in fiscal 2030. There is risk our conditional reduced tax rates may not be renewed.
  58. 수정Our indebtedness and debt covenants could adversely affect our financial condition and business.
    As of October 27, 2024, 26, 2025, we had $6.2 $6.5 billion in aggregate principal amount of senior unsecured notes outstanding. Under the indenture governing the senior unsecured notes, we may be required to offer to repurchase the notes at a price equal to
  59. 수정Our indebtedness and debt covenants could adversely affect our financial condition and business.
    Under the indenture governing the senior unsecured notes, we may be required to offer to repurchase the notes at a price equal to 101% of the principal amount, plus accrued and unpaid interest, if we experience a change of control and a contemporaneous downgrade of the notes below investment grade. We also have in place revolving credit facilities that allow us to borrow up to an aggregate amount of approximately $4.1 billion. While no amounts were outstanding under this these credit facility facilities as of October 27, 2024, 26, 2025, we may borrow amounts in the future under this these credit facility facilities or enter into new financing arrangements. Our ability to satisfy our debt obligations is dependent upon the results of our business operations and subject to other risks discussed in this section. If we fail to satisfy our debt obligations, or comply with financial and other debt covenants, we may be in default and any borrowings may become immediately due and payable, and such default may constitute a default under our other obligations. There can be no assurance that we would have sufficient financial resources or be able to arrange financing to repay any borrowings at such time. Significant changes in our credit rating, disruptions in the global financial markets, or incurrence of new or refinancing of existing indebtedness at higher interest rates could have a material and adverse impact on our access to and cost of capital for future financings, financings and our financial condition.
  60. 수정Our business depends on the successful implementation and proper functioning of information systems we use.
    Our business depends on certain information systems, including, enterprise resource planning, product research and development, financial reporting, information technology network management and telecommunications. These systems may be maintained by us or by our third-party vendors. Failures of information these systems we use could disrupt our operations, impede our ability to timely and accurately process and report financial results, and adversely impact our business, financial condition and results of operations.
  61. 수정Our business depends on the successful implementation and proper functioning of information systems we use.
    We periodically implement new or enhanced information systems. Implementation of new business processes and information systems requires the commitment of significant personnel, training and financial resources, and entails risks to our business operations. If the implementation or improvement of information systems is delayed or unsuccessful, , we may not realize anticipated productivity improvements or cost efficiencies, efficiencies and may experience interruptions in service and operational difficulties, which could result in quality issues, reputational harm, lost market and revenue opportunities, opportunities and otherwise adversely affect our business, financial condition and results of operations.
  62. 수정We may incur impairment charges related to goodwill or long-lived assets.
    We have a significant amount of goodwill and other acquired intangible assets related to acquisitions. Goodwill and purchased intangible assets with indefinite useful lives are not amortized but are reviewed for impairment annually during the fourth quarter of each fiscal year and more frequently when events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The review compares the fair value for each of our reporting units to its associated carrying value, including goodwill. Factors that could lead to impairment of goodwill and intangible assets include adverse industry or economic trends, reduced estimates of future cash flows, declines in the market price of our common stock, changes in our strategies or product portfolio and restructuring activities. Our valuation methodology for assessing impairment requires management to make judgments and assumptions based on historical experience and projections of future operating performance. We have recorded charges to earnings, and may in the future be required to record charges to earnings, when impairments of goodwill or intangible assets have been determined to exist.
  63. 수정We are exposed to risks related to legal proceedings, claims and investigations.
    From time to time we are, and in the future may be, involved in legal proceedings or claims regarding patent infringement, trade secret misappropriation, other intellectual property rights, trade compliance, including import, export and customs, antitrust, anti-corruption, compliance with government contracting requirements, environmental regulations, cybersecurity, privacy, data protection, securities, contracts, product performance, product liability, unfair competition, employment, workplace safety, safety and other matters. We may receive, and have received, inquiries, warrants, subpoenas, and other requests for information in connection with government investigations of potential or suspected violations of law or regulations by our company and/or or our employees. For example, we have received subpoenas from government authorities requesting information relating to China customer shipments, export controls compliance, certain federal award applications and information submitted to the federal government. We also on occasion receive notifications from customers who believe we owe them indemnification, product warranty or have other obligations related to claims made against such customers by third parties.
  64. 수정We are exposed to risks related to the global regulatory environment.
    We are subject to the laws of the United States and multiple foreign jurisdictions and the rules and regulations of various governing bodies, which may differ among jurisdictions, including those related to financial and other disclosures, accounting standards, securities, corporate governance, public procurement and public funding, intellectual property, tax, trade (including import, export and customs), customs regulations), antitrust, cybersecurity, environment (including those relating to sustainability and climate), environment, health and safety, employment, immigration and travel regulations, human rights, privacy, data protection and localization, localization and anti-corruption. Changing, inconsistent or conflicting laws, rules and regulations, and ambiguities in their interpretation and application create uncertainty and challenges, and compliance with laws, rules and regulations may be onerous and expensive, divert management time and attention from revenue-generating activities, and otherwise adversely impact our business operations. Violations of these law, rules and regulations, including, among others, those related to financial and other disclosures, trade (including import and export regulations), antitrust, environment, health and safety, privacy, data protection, and anti-corruption, regulations could result in fines, criminal penalties, restrictions on our business, and damage to our reputation, and could have an adverse impact on our business operations, financial condition and results of operations.
  65. 수정Implementation and reporting on our sustainability strategies and targets could result in additional costs, and our inability to achieve them could have an adverse impact on our reputation and performance.
    We periodically communicate our strategies and targets related to sustainability matters. These strategies and targets, and their underlying assumptions, reflect our current plans and aspirations, and we may be unable to achieve them. Changing customer and shareholder sustainability expectations, including increasing customer demand for sustainable products, and regulatory requirements, as well as actions taken to achieve our sustainability targets, could cause us to incur substantial expense and alter our manufacturing, operations or equipment designs and processes. Any failure or perceived failure to timely meet these sustainability requirements, expectations or targets, or a failure to realize the anticipated benefits of planned investments and technology innovations related to sustainability, could adversely impact the demand for our products and subject us to significant costs and liabilities and reputational risks that could in turn adversely affect our business, financial condition and results of operations. In addition, standards and processes for measuring and reporting greenhouse gas emissions and other sustainability metrics may change over time and may result in inconsistent data, increase our costs, result in significant revisions to our strategies and targets or impact our ability to achieve them. We also are or may become subject to new climate and sustainability laws and regulations, such as the State of California’s new climate change disclosure rules, the European Union’s Corporate Sustainability Reporting Directive and the United States Securities and Exchange Commission’s rules on climate-related risks. International Sustainability Standards Board standards. Compliance with such laws and regulations, as well as increased scrutiny from regulators, customers and other stakeholders on our sustainability practices, could result in additional costs and expose us to new risks. Any scrutiny of our greenhouse gas emissions or other sustainability disclosures, our failure to achieve related strategies and targets, or our failure to disclose our sustainability measures consistent with applicable laws and regulations or to the satisfaction of regulators or our stakeholders could negatively impact our reputation or performance.
  66. 수정We are subject to risks associated with environmental, health and safety regulations.
    We are subject to environmental, health and safety regulations in connection with our global business operations, including but not limited to: regulations related to the design, manufacture, sale, shipping, import, export and use of our products; use, handling, discharge, recycling, transportation and disposal of hazardous materials used in our products or in producing our products; the operation of our facilities; and the use of our real property, including in connection with construction of our infrastructure projects. The failure or inability to comply with existing or future environmental, health and safety regulations could result in: significant remediation or other legal liabilities; the imposition of penalties and fines; restrictions on the development, manufacture, sale, shipping shipping, import, export or use of certain of our products; limitations on the operation of our facilities or ability to use our real property; and a decrease in the value of our real property. We could be required to alter our product design, manufacturing, manufacturing and operations, operations and incur substantial expense in order to comply with environmental, health and safety regulations, including reporting requirements. Any failure to comply with these regulations could subject us to significant costs and liabilities that could materially and adversely affect our business, financial condition and results of operations.
  67. 문장 삭제The industries we serve can be volatile and difficult to predict.
    We are a supplier to the global semiconductor and display and related industries, which historically have been cyclical and are subject to volatility in customer demand. Artificial intelligence is evolving rapidly and is a relatively new demand driver for semiconductors and semiconductor equipment, and it is difficult to accurately forecast such demand.
  68. 문장 삭제We are exposed to risks associated with an uncertain global economy.
    Markets for our semiconductor and display equipment and services depend largely on business and consumer spending and demand for semiconductor chips and electronic devices. Uncertain or adverse economic and business conditions could result in decreases in business and consumer spending and demand.
  69. 삭제We are exposed to risks associated with an uncertain global economy.
    Increases in demand for semiconductor chips and electronic devices have caused, and may in the future cause, a shortage of parts and materials needed to manufacture our products. Such shortages, and shipment delays due to transportation capacity and interruptions, have adversely impacted, and may in the future adversely impact, our suppliers’ ability to meet our requirements. Accelerated digital transformation may further increase demand and exacerbate shortages and strain our manufacturing capacity, which may adversely impact our ability to meet customer demand and have an adverse impact on our revenues, operating results and financial condition.
  70. 삭제We are exposed to risks associated with an uncertain global economy.
    Uncertain or adverse economic and market conditions, difficulties in obtaining capital, increased costs or reduced profitability may cause some customers to scale back operations, exit businesses, merge with other manufacturers, or file for bankruptcy protection and potentially cease operations, which can result in lower sales, additional inventory or bad debt expense. Economic and industry uncertainty may impair the ability of suppliers to deliver parts and negatively affect our ability to manage operations and deliver products. These conditions may also lead to consolidation or strategic alliances among other equipment manufacturers, which could adversely affect our ability to compete effectively.
  71. 문장 삭제We are exposed to risks associated with an uncertain global economy.
    Uncertain economic and industry conditions and supply chain challenges make it more difficult to accurately forecast operating results, make business decisions, and identify and prioritize the risks that may affect our businesses, sources and uses of cash, financial condition and results of operations. If we do not appropriately manage our business operations it could have a material and adverse impact on our business performance and financial condition.
  72. 문장 삭제We are exposed to risks associated with an uncertain global economy.
    We maintain an investment portfolio that is subject to general credit, liquidity, market and interest rate risks. We also maintain cash balances in various bank accounts globally to fund normal operations.
  73. 문장 삭제We are exposed to the risks of operating a global business.
    As a result of the global nature of our operations, our business performance and results of operations may be adversely affected by a number of factors, including:
  74. 삭제We are exposed to the risks of operating a global business.
    •uncertain or adverse global economic, political and business conditions and demand;
  75. 삭제We are exposed to the risks of operating a global business.
    •global trade issues and changes in and uncertainties with respect to trade and export regulations, trade policies and sanctions, tariffs, and international trade disputes, including new and changing export regulations and their impact on our ability to export products and provide services to customers;
  76. 삭제We are exposed to the risks of operating a global business.
    •positions taken by governmental agencies regarding national, commercial or security issues posed by the development, sale or export of certain products, technologies and raw materials, including critical materials and critical minerals;
  77. 삭제We are exposed to the risks of operating a global business.
    •political instability, social unrest, terrorism, acts of war or other geopolitical turmoil, such as the conflict in the Middle East, in locations where we have operations, suppliers or sales, or that may influence the value chain of the industries we serve;
  78. 삭제We are exposed to the risks of operating a global business.
    •cybersecurity incidents;
  79. 삭제We are exposed to the risks of operating a global business.
    •efforts to influence us to conduct more or less of our operations and sourcing in a particular country;
  80. 삭제We are exposed to the risks of operating a global business.
    •different and changing local, regional, national or international laws and regulations, including contract, intellectual property, cybersecurity, data privacy, labor, tax, and import/export laws, and the interpretation and application of laws and regulations;
  81. 삭제We are exposed to the risks of operating a global business.
    •ineffective or inadequate legal protection of intellectual property rights in certain countries;
  82. 삭제We are exposed to the risks of operating a global business.
    •interruptions to our or our suppliers’ supply chain;
  83. 삭제We are exposed to the risks of operating a global business.
    •the availability of raw materials, including critical materials and critical minerals, and increases and volatility of commodity, energy and shipping costs;
  84. 삭제We are exposed to the risks of operating a global business.
    •delays or restrictions on personnel travel and in shipping materials or products;
  85. 삭제We are exposed to the risks of operating a global business.
    •geographically diverse operations and projects, and our ability to maintain appropriate business processes, procedures and internal controls, and comply with environmental, health and safety, anti-corruption and other regulatory requirements;
  86. 삭제We are exposed to the risks of operating a global business.
    •challenges in hiring and integrating workers in different countries, and in effectively managing a diverse workforce with different experience levels, languages, cultures, customs, business practices and worker expectations, and differing employment practices and labor issues;
  87. 삭제We are exposed to the risks of operating a global business.
    •the ability to develop relationships with local customers, suppliers and governments;
  88. 삭제We are exposed to the risks of operating a global business.
    •fluctuations in interest rates and currency exchange rates, including the relative strength or weakness of the U.S. dollar against the Japanese yen, Israeli shekel, euro, Taiwanese dollar, Singapore dollar, Chinese yuan or Korean won;
  89. 삭제We are exposed to the risks of operating a global business.
    •the need to provide technical support in different locations around the world;
  90. 삭제We are exposed to the risks of operating a global business.
    •performance of geographically diverse third-party providers, including certain engineering, software development, manufacturing, information technology and other functions;
  91. 삭제We are exposed to the risks of operating a global business.
    •service interruptions from utilities, transportation, data hosting or telecommunications providers;
  92. 삭제We are exposed to the risks of operating a global business.
    •impacts of natural disasters and extreme and chronic weather events on our operations and those of our customers and suppliers, which may be exacerbated by climate change;
  93. 삭제We are exposed to the risks of operating a global business.
    •regional or global health epidemics;
  94. 삭제We are exposed to the risks of operating a global business.
    •the increasing need for a mobile workforce and travel to different regions; and
  95. 삭제We are exposed to the risks of operating a global business.
    •uncertainties with respect to economic growth rates in various countries, including for the manufacture and sale of semiconductors and displays in the developing economies of certain countries.
  96. 문장 삭제We are exposed to risks associated with a highly concentrated customer base.
    Our customer base is geographically concentrated, particularly in China, Taiwan, Korea and Japan.
  97. 문장 삭제Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.
    Volatility of demand for equipment can also increase our and our suppliers’ capital, technical, operational and other risks, and may cause some suppliers to exit businesses, or scale back or cease operations, which could impact our ability to meet customer demand.
  98. 삭제Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.
    Cybersecurity incidents affecting our suppliers could impact our supply chain. Such incidents have caused, and may from time to time cause, difficulties and delays in our ability to obtain parts, materials and services needed to manufacture our products and provide services, and have adversely impacted, and may from time to time adversely impact, our manufacturing operations, our ability to meet customer demand, and our operating results. Failure to timely recover from such delays could materially and adversely affect our business, financial condition and results of operations, and may also cause our business and financial outlook to be inaccurate.
  99. 삭제Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.
    •information technology or infrastructure failures within our operations or those of a third-party supplier or service provider, including failures caused by cybersecurity incidents; impacts of natural disasters, extreme and chronic weather events (which may be exacerbated by climate change), or other events beyond our control (such as earthquakes, utility interruptions, tsunamis, hurricanes, typhoons, floods, storms or fires); and
  100. 삭제Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.
    •regional or global health epidemics.
  101. 문장 삭제Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.
    If a supplier fails to meet our requirements concerning quality, cost, intellectual property protection, socially-responsible and sustainable business practices, or other performance factors, or does not meet regulatory requirements applicable to our supply chain, we may transfer our business to alternative sources. These outcomes could have a material and adverse impact on our business and competitive position and subject us to legal proceedings and claims. If we are unable to meet our customers’ demand for a prolonged period due to our inability to obtain certain parts or components from suppliers on a timely basis or at all, our business, results of operations and customer relationships could be adversely impacted.
  102. 삭제We are exposed to various factors that impact the industries in which we operate.
    •the importance of establishing, improving and maintaining strong relationships with customers;
  103. 삭제We are exposed to various factors that impact the industries in which we operate.
    •the cost and complexity for customers to move from product design to volume manufacturing, which may slow the adoption rate of new manufacturing technology;
  104. 삭제We are exposed to various factors that impact the industries in which we operate.
    •the importance of reducing the total cost of manufacturing system ownership;
  105. 삭제We are exposed to various factors that impact the industries in which we operate.
    •manufacturers’ ability to reconfigure and re-use fabrication systems which can reduce demand for new equipment;
  106. 삭제We are exposed to various factors that impact the industries in which we operate.
    •the importance of developing products with sufficient differentiation to influence customers’ purchasing decisions;
  107. 삭제We are exposed to various factors that impact the industries in which we operate.
    •requirements for shorter cycle times for the development, manufacture and installation of our equipment;
  108. 삭제We are exposed to various factors that impact the industries in which we operate.
    •price and performance trends for semiconductor devices and displays, and the impact on demand for such products;
  109. 삭제We are exposed to various factors that impact the industries in which we operate.
    •government incentives for local suppliers and domestic semiconductor research and development, and increased investment in manufacturing capabilities;
  110. 삭제We are exposed to various factors that impact the industries in which we operate.
    If we do not effectively address these factors, our business and results of operations may be materially and adversely impacted.
  111. 삭제된 항목
    We are exposed to factors specific to the semiconductor industry.
  112. 문장 삭제We are exposed to factors specific to the semiconductor industry.
    The semiconductor industry is characterized by factors particular to this industry that impact demand for and the profitability of our semiconductor manufacturing equipment and service products, including:
  113. 삭제We are exposed to factors specific to the semiconductor industry.
    •the concentration of new wafer starts in Korea and Taiwan, where our service penetration and service-revenue-per-wafer-start have been lower than in other regions;
  114. 삭제We are exposed to factors specific to the display industry.
    •the importance of new types of display technologies, such as organic light-emitting diode (OLED), low temperature polysilicon (LTPS) and metal oxide transistor backplanes, flexible displays, and new touch panel films;
  115. 삭제We are exposed to factors specific to the display industry.
    •the increasing cost of research and development, and complexity of technology transitions and inflections, and our ability to timely and effectively anticipate and adapt to these changes;
  116. 삭제We are exposed to factors specific to the display industry.
    •the timing and extent of an expansion of manufacturing facilities in China, which may be affected by changes in economic conditions and governmental regulations, including trade policies and export regulations;
  117. 삭제We are exposed to factors specific to the display industry.
    •the importance of increasing market positions in products and technologies with growing demand;
  118. 삭제We are exposed to factors specific to the display industry.
    •the rate of transition to new display technologies for TVs, information technology products and mobile applications, and augmented and virtual reality applications, and the resulting effect on capital intensity in the industry and on our product differentiation, gross margin and return on investment;
  119. 삭제We are exposed to factors specific to the display industry.
    •the concentration of display manufacturer customers, and fluctuations in customer spending quarter over quarter and year over year for display fabrication equipment; and
  120. 삭제We are exposed to factors specific to the display industry.
    •the dependence on a limited number of display manufacturer customers’ selection of new technologies, and their ability to successfully commercialize new products and technologies, and uncertainty with respect to future display technology end-use applications and growth drivers.
  121. 문장 삭제We are exposed to factors specific to the display industry.
    The display industry has experienced decreased levels of investment in display fabrication equipment.
  122. 삭제The industries in which we operate are highly competitive and subject to rapid technological and market changes.
    •improve our manufacturing processes and achieve cost efficiencies across product offerings;
  123. 삭제The industries in which we operate are highly competitive and subject to rapid technological and market changes.
    •adapt to changes in value offered by companies in different parts of the supply chain;
  124. 삭제The industries in which we operate are highly competitive and subject to rapid technological and market changes.
    •qualify products for evaluation and volume manufacturing with our customers; and
  125. 삭제We are exposed to risks associated with expanding into new and related markets and industries.
    •new materials, processes and technologies;
  126. 문장 삭제We are exposed to risks related to protection and enforcement of intellectual property rights.
    Monitoring and detecting any unauthorized access, use or disclosure of our intellectual property is difficult and costly and we cannot be certain that the protective measures we have implemented will completely prevent misuse.
  127. 문장 삭제We are exposed to cybersecurity threats and incidents.
    To the extent artificial intelligence capabilities improve and are increasingly adopted by threat actors, they may be used to identify vulnerabilities and craft increasingly sophisticated cybersecurity attacks.
  128. 문장 삭제We operate in jurisdictions with complex and changing tax laws.
    This will change various aspects of the existing framework under which our global tax obligations are determined, and will unfavorably impact our existing tax incentives and effective tax rate, beginning in fiscal 2025. The OECD continues to release additional guidance on this new global minimum tax framework. We will continue to monitor these developments, as each jurisdiction incorporates changes into its tax laws.
  129. 문장 삭제We operate in jurisdictions with complex and changing tax laws.
    Our conditional reduced tax rates in Singapore will expire in fiscal 2025, excluding potential renewal and subject to certain conditions with which we expect to comply.
  130. 문장 삭제Our indebtedness and debt covenants could adversely affect our financial condition and business.
    We also have in place a $1.5 billion revolving credit facility.
  131. 문장 삭제We may incur impairment charges related to goodwill or long-lived assets.
    We may be required to record future charges to earnings during the period in which an impairment of goodwill or intangible assets is determined to exist.
  132. 문장 삭제Implementation and reporting on our sustainability strategies and targets could result in additional costs, and our inability to achieve them could have an adverse impact on our reputation and performance.
    We periodically communicate our strategies and targets related to sustainability matters, including greenhouse gas emissions, the sustainability of our products, diversity and inclusion, and human rights.