Update on Applied Materials Operations in Japan
<<New information regarding Applied's support for relief efforts in 6th paragraph>>
The more than 13,000 members of the Applied Materials family have spent the past several days gripped with shock and sadness by the historic tragedy occurring in Japan. Our thoughts and prayers are with our employees and their families in the region, the many friends we have made in Japan over the years we have been fortunate enough to do business there, and all the victims of this disaster. Applied has both extensive operations as well as customer relationships in the market, primarily in our semiconductor, display and services businesses. We have more than 650 employees, 22 facilities, and support about 300 of our customers’ fabs in Japan.
Immediately after the earthquake and tsunami, a global crisis response team was activated to look after our team, operations and customers in the region. We are pleased to report that we have been able to account for all of our employees and contractors in Japan, which includes more than 100 employees based outside Japan who were traveling in the region at the time of the earthquake and subsequent tsunami. We are actively working to confirm that the families of all our employees in Japan are safe, however given the dynamic nature of the situation, we have not yet been able to confirm this for every member of the team.
In terms of our operations in Japan, we evacuated our primary parts center near Tokyo immediately after the earthquake and the facility sustained some limited damage. The parts center remains closed. Our offices in Naka and Sendai also suffered minor damage. None of our other operations in the country were significantly impacted. We are currently establishing a Customer Engineering support center in the Osaka office to enable resumption of our customer service capability in the country.
The Worldwide Operations group has been proactively working to minimize the impact of the event on our global supply chain. A team has been established to address supply disruptions and identify alternate suppliers. Efforts are underway to communicate with all suppliers and assess operational readiness.
Our customers and suppliers in Japan are working to evaluate their operations. We are in ongoing communication with them to provide support and we are readying our supply chain so that we can move as quickly as possible. In addition, the Applied Global Services team is actively working with customers to get the necessary support into their fabs.
To support the mounting relief and recovery efforts, Applied Materials has pledged to donate 50 million Yen (approximately $612,000) to the Red Cross Japan. In addition, the Employee Giving Program has been expanded to allow employees to support eligible relief organizations. The Applied Materials Foundation will match donations, dollar-for-dollar, up to $10,000 USD. Hundreds of employees have already participated in the program. These donations, combined with the Foundation match and the Corporate donation will help support the relief efforts in Japan.
The situation remains fluid and we are carefully monitoring available information, including reports concerning the nuclear power plant risks, to better understand and address the complex challenges. We will continue to update as things change.