SANTA CLARA (KCBS)—Santa Clara-based chip-making equipment manufacturer Applied Materials is acquiring Tokyo Electron Ltd., a rival maker of equipment for production of semiconductors, flat panel displays and solar panels.

“We are proud to be launching a new global company,” Tokyo Electron Chief Executive Tetsuro Higashi said in joint webcast.

Applied Materials CEO Gary Dickerson said the $9.3 billion deal made a lot sense for both companies.

“I’m very confident that this combination will create significantly more value for our shareholders than either company could deliver on its own,” he said.

The new company, which has yet to be named, will be based in Santa Clara and Tokyo.

Dickerson is expected to take over as the CEO. The all-stock transaction is expected to be completed next year and will result in new high-tech giant, is expected to be worth about $29 billion.

(Copyright 2013 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)


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