The global semiconductor industry had gone through a consecutive years of prosperity in the 1990s due to the strong demand in personal computer as well as the enormous internet investiment. Even more, it gained an eruptive growth in years 1999 and 2000. The semiconductor fabrication companies¡¦ capital spending in new equipment segment grew year by year. The equipment suppliers¡¦ revenue and gross margin had then set record high. However, combined the internet bubbled in 2000 with the shortage of killer application, the chip makers¡¦ capital spending had thereafter dramatically slowdown for years and hence seriously impacted the equipment suppliers¡¦ financial performance. Ever after the great recession in year 2000, the equipment suppliers have been taking steps to alleviate the industry downturns¡¦ impact in their financial report. Meanwhile, the companies have also identified ways to further grow their business. Besides, the semiconductor industry has been introducing advanced nanomanufacturing technologies which demand huge resource commitment as well as capital investiment. The chip makers have therefore urged the equipment suppliers to assist them in area about cost reduction and productivity improvement. This study takes the world biggest semiconductor frabication equipment maker, Applied Materials, as an example, to investigate the company¡¦s strategically responsivenesses against the business cycles, the current industry environment and its desire in business growth. The conclusions are: 1)Applied Materials has been taking joint ventures, outsourcing and global development center establishments to reduce its operation cost. It had also entered the fab service market to create a new niche. 2)In response to the customers¡¦ demand in productivity improvement , Applied Materials has been activating differentiation strategies to develop high-productivity products. It has also been performing Continuous Improvement Plans (CIP) to further reduce its products¡¦ Cost Of Ownership (COO) to meet the customers¡¦ requirement in cost reduction. 3)The equipement suppliers have been conducting related constrained diversification strategies to extend their business scope. They mostly used the Mergers & Acquisitions to enter the new markets. 4)The strategy effectiveness (in view of the shareholders¡¦ return on investment), is positively related to its consistency with the company¡¦s core competencies. In other word, the higher the consistency is, the better the ROI will be. Keyword: Internal Environment Analysis, External Environment Analysis, Strategic Responsiveness, Diversification Strategy, Differentiation Strategy, Mergers & Acquisitions