INTERVIEW-UPDATE 1-Applied Materials sees signs of solar uptick

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Tue Sep 1, 2009 4:05pm EDT

* Applied Materials CEO says units on "growth leg"

* Sees substantial uptick in display business

* Says seeing first signs of solar coming back

By Poornima Gupta

SANTA CLARA, Calif., Sept 1 (Reuters) - Applied Materials Inc (AMAT.O), the world's largest producer of chip-making gear, is seeing first signs of improvement in the solar sector with the beginning of some capacity build-up in China, Chairman and Chief Executive Mike Splinter said on Tuesday.

"We are seeing investment for capacity in China, especially in making more wafers for crystalline silicon solar cell," Splinter said in an interview on the sidelines of a solar event held in Santa Clara University. "People are making those investments because they believe the demand is going to be there."

Applied Materials, stung by a severe decline in sales for its core semiconductor manufacturing equipment, has moved aggressively into solar equipment to spur growth. But the solar market has also been pinched by the economic downturn.

"We are seeing the first signs of solar coming back," Splinter said.

Splinter said he believes China is where most of the solar panel manufacturing investment is going to be made in the near term.

"They (China) are making 50 percent of the solar panels today," he said. "That trend continues in a strong way."

Splinter said all of Applied Materials' businesses are growing, with significant improvement in displays.

"We expect our display business to have great year for the next 12 months," he said. "Our expectation from this point is that all of our businesses are going to be on a growth leg."

Splinter also said the company has seen an "uptick" in the chip business.

(Reporting by Poornima Gupta; Editing by Richard Chang)

((poornima.gupta@reuters.com; 415-677-3934; Reuters Messaging: poornima.gupta.reuters.com@reuters.net)) Keywords: APPLIEDMATERIAL/CEO Keywords: APPLIEDMATERIAL/CEO

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