Analyst: Applied to lose share amid scandal

As reported, prosecutors in Seoul, South Korea, arrested two executives from U.S. semiconductor equipment maker Applied (Santa Clara, Calif.), alleging they stole Samsung process technology details and passed them on to Hynix. In a filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday (Feb. 3), Applied confirmed the report.

''We have not made any further comment since our 8-K filing yesterday,'' according to a spokesman for Applied. The fallout remains unclear, but Applied could lose share to Lam, Novellus, TEL and others in the region.

Prior to the bombshell, analysts said Applied is both gaining and losing share in Korea. Others see share loses for Applied. ''We believe Applied's recent mishap in Korea could benefit Novellus, which is aggressively targeting that region to grow its share,'' said Edwin Mok, an analyst with Needham & Co. LLC.