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Accelerating New Memory Technologies for the IoT and Cloud ComputingKevin Moraes Ph.D.Vice President | Metal Deposition ProductsApplied Materials, Inc.

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This presentation contains forward-looking statements, including those regarding anticipated growth and trends in Applied’s businesses and markets, industry outlooks, technology transitions, and other statements that are not historical facts. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements and are not guarantees of future performance. Information concerning these risks and uncertainties is contained in Applied’s most recent Form 10-Q and 8-K filings with the SEC. All forward-looking statements are based on management's current estimates, projections and assumptions, and Applied assumes no obligation to update them.

Forward-Looking Statements

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2017 2018E 2022E

Challenges to Chip Performance, Power and Cost

Current Computing Architectures are Not Sustainable

>4

2.5

2

1.8

14 to10nm

22 to14nm

32 to22nm

45 to32nm

SOURCE: Bernstein

Time Between LogicNodes in Years

Performance Improvements Over Time (vs. Vax-11/780)

100,000

10,000

1,000

100

10

1978

1986

2003

2011

2015

2018

25%per year

52%per year

23%per year

12%per year

3.5%per year

End of Dennard ScalingLimits of parallelism of Amdahl’s Law

End of Moore’s Law

VAX-11/780

SOURCE: Computer Architecture: A Quantitative Approach, Sixth Edition, John Hennessy and David Patterson, December 2017

1.5ZB 2ZB

>10ZB

SOURCE: Applied Materials model based on forecasts published by Cisco, Intel, Western Digital

Dramatic Slowdown of Moore’s Law ScalingIoT and Industry 4.0 Creating an Explosion of Data

HumansMachines

Inflection YearData Generated by Machines > Humans

53% 44% <10%

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Foundation is Materials Engineering

Enabled by

Advanced packaging

New structures / 3D

New ways to shrink

New architectures

New materialsPPAC

POWER

PERFORMANCE

AREA-COST

A New Playbook is Needed to Drive PPAC Improvements

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AI – Big Data Driving a Renaissance of Hardware Development and Investment

INITIAL DEPLOYMENT CLOUD EDGE

AcceleratorsGPU, TPU, ASICS, FPGAs

Now Autos

Near MemoryDDR, SRAM, HBM, NAND, SCM

Now to 2 years

New MemoryMRAM, ReRAM, PCRAM, FeRAM

Now to 5 years

In-Memory ComputeAnalog, ReRAM, PCRAM

2 to 5 years

Novel HPCQuantum, Synaptic

5 to 10 years

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MRAM PCRAM and ReRAMMagnetic Random Access Memory Phase Change RAM and Resistive RAM

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New Memory Technologies Improve Computing Efficiency

New Memories Boost Computing Efficiency at Both Edge and Cloud

Logic

SRAM

Flash

PPAC

POWER

PERFORMANCE

AREA-COST

PPAC

POWER

PERFORMANCE

AREA-COST

Logic

SRAM

MRAM

CPU/Accelerator

DRAM

SSD/HDD

CPU/Accelerator

DRAM

SSD/HDD

PCRAMReRAM

CloudEdge

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New Memory Accelerates PPAC Gains

PPAC

POWER

PERFORMANCE

AREA-COST

PPAC

POWER

PERFORMANCE

AREA-COST

Chi

p Si

ze

Memory Density

SRAM

MRAM

Pow

er

eFlash+SRAM MRAM

1x

2-10x

DOI: 10.3390/jlpea4030214DOI: 10.1109/IEDM.2015.7409770

Cos

t/Bit

DRAM SCM

1x

~0.6x

Optane DC persistent memory spec from Intel.com

Spee

d (W

rite)

NAND SCM

>10x

1x

Edge (eNVM – MRAM)

Cloud (SCM – PCRAM/ReRAM)

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Phase-Change RAM (PCRAM)by Phase Transition of Memory Element

Resistive RAM (ReRAM)by Controlling Conduction Path Formation

Magnetic RAM (MRAM)by Controlling the Magnetic Orientation

New Memories Based on Resistance Change

Amorphous

Crystalline

High Resistance(DATA “1” state)

Low Resistance(DATA “0” state)

SN

SN

NS

NS

Tunnel Barrier

“Free” Layer

“Ref” Layer

SN

SN

SN

SN

Tunnel BarrierLow Resistance(DATA “00” state)

High Resistance(DATA “11” state)

Intermediate Resistances(DATA “01, 10” states)

Novel Materials Engineering is Essential for New Memories

Electrode

Electrode

Electrode

Electrode

Electrode

Electrode

Neuromorphic computing

N

S

W E

Compound materials highly susceptible to impurities and degradation Requires precise thickness and composition uniformity Difficult to control roughness and interface quality

Unique Manufacturing Challenges of New Memories

30+ layer stack with ultra-thin films (as thin as 1/500,000th

of a human hair) Height variations of just a fraction of an atom can impact

performance and endurance

MRAM

Commercial Adoption Requires Manufacturing Breakthroughs

Reference Layer

Free Layer

Electrode

Electrode

MgOBarrier

PCR

AM

ReR

AM

Electrode

Electrode

Selector

Memory

Electrode

Electrode

Electrode

Selector

Memory

Electrode

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Applied Endura® Clover™ MRAM PVD SystemThe Industry’s First Production-Worthy MRAM Platform for HVM

Integrated materials solution performs multiple process steps under vacuum

Industry’s leading PVD chamber deposits up to five materials with atomic-level precision

Clover PVD MgO creates superior tunnel barrier for low-power, high-endurance MRAM performance

On-board metrology enables real-time process monitoring for higher yield, lower cost and faster time to market

30+ Layers, 10+ Materials in Single Integrated System

Most Sophisticated System Ever Created by Applied Materials

Bottom Electrode

Reference Layer

MgO Barrier

Free Layer

Top Electrode

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Clover PVD Designed for Complex MRAM Deposition

Unique Addition to Applied’s PVD Leadership

Material #1 Material #1Material #2 #2

Material #1

#5

#3#4

Wafer Substrate Wafer Substrate Wafer Substrate

5 Materials in One Chamber

Sub-Angstrom Uniformity Sharp Atomic Interface No Cross-Contamination

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Treatment Creates High-Quality MgO Barrier and Interfaces

< -120 C

> 350 C

RT

Crystalline

Crystalline

Amorphous

Amorphous

Crystalline Free Layer

MgO Barrier

Reference Layer

Annealing Annealing

Cooling

Heating Crystalizes Films; Cryogenic Cooling Promotes Sharp InterfacesExternal Use

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Clover PVD MgO Delivers Superior MRAM Results

Performance(Improved Texture and Interface)

Low Power and High Endurance are Ideal for Edge Devices

Endurance(High-Quality MgO Barrier)

(Ceramic Sputtering)(Metal Deposition + Oxidation) (Ceramic Sputtering)(Metal Deposition + Oxidation)

Alternative MgO Clover PVD MgO Clover PVD MgOAlternative MgO

Applied Internal Data Applied Internal Data

>100X+20%

Unique Manufacturing Challenges of New Memories

30+ layer stack with ultra-thin films (as thin as 1/500,000 thick of human hair)

Height variations of just a fraction of an atom can impact performance and endurance

Compound materials highly susceptible to impurities and degradation Requires precise thickness and composition uniformity Difficult to control roughness and interface quality

MRAM

PCR

AM

ReR

AM

Reference Layer

Free Layer

Electrode

Electrode

MgOBarrier

Commercial Adoption Requires Manufacturing Breakthroughs

Electrode

Electrode

Selector

Memory

Electrode

Electrode

Electrode

Selector

Memory

Electrode

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Integrated materials solution enables precise deposition of all PCRAM and ReRAM films under vacuum

Tight composition control of compound films delivers optimum device performance

Excellent film thickness, uniformity and interface control improves yield

On-board metrology enables real-time process monitoring for higher yield, lower cost and faster time to market

Applied Endura® Impulse™ PVD SystemEnd-to-End Capabilities for PCRAM and ReRAM HVM

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Excellent composition uniformity High throughput and productivity

Impulse PVD Delivers Exceptional Composition Control

Proven High-Volume Manufacturability with Stable Composition

Ge(%) Sb(%) Te(%)

0

100%

Ge(%) Sb(%) Te(%)

1%

0

Applied Internal Data

Memory Composition Non-Uniformity

Memory Composition Repeatability

Wafer Count (>10,000)

Wafer Count (>10,000)

Applied Internal Data

On-Board Metrology Enables Precise Thickness Control

Enables real-time process monitoring and control Measures delicate films under vacuum Achieves faster ramps, better yields for production

Product Excursion Detection Comparison

70% Yield (Delayed detection)

50% Yield (No detection)

90% Yield (OBM real-time detection)

Excursion Starting Point

Industry’s Only On-Board Metrology with 1/100th of a Nanometer Resolution

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Applied Materials Endura Clover and Impulse PVD

Explosive growth in data just as Moore’s Law is slowing down

New-memories improve computing efficiency on the Edge and the Cloud

Manufacturing challenges with complex materials have previously limited new memory adoption

Clover and Impulse PVD technologies enable high volume manufacturing with higher performance films

On-board metrology improving learning rates and yield byreliably measuring films that can not be otherwise be measured

Systems are shipping to leading customers: MRAM at 5 and PCRAM/ReRAM at 8 customers

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