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With $4 billion investment, Applied Materials announces chip R&D center in Silicon Valley

Update time : 2023-05-25 17:10:22

Applied Materials (AMAT.US), the largest U.S. maker of chip equipment, plans to spend up to $4 billion on a new research and development center near its California headquarters, beginning construction on a now-rare building project in the heart of Silicon Valley. the EPIC center, located on Applied Materials' campus in Santa Clara, will be the semiconductor industry's largest, the company said Monday. R&D neutral. Applied Materials' project will allow the company and its customers to quickly develop new manufacturing technologies.
Applied Materials, whose main business is providing various types of high-end manufacturing equipment related to chip production, is an important upstream equipment provider for chip manufacturing giants such as TSMC (TSM.US), Samsung Electronics, Micron (MU.US) and Intel (INTC.US) from the perspective of the chip industry chain.

Like many current construction projects in the industry, the project is designed to leverage funding provided by the U.S. government. The U.S. Chip and Science Act (Chips and Science Act) passed last year will allocate about $52 billion to help revitalize domestic chip research and development and manufacturing in the United States, major chip companies are hoping to benefit from this government subsidy. Applied Materials CEO Gary Dickerson said in an interview that this ambition for the scale of the new center will depend on how much assistance the company can specifically receive.
"The scale and speed of our action depends on the incentives," Dickerson said. He stressed that the company chose to build in Silicon Valley because of its proximity to many companies interested in the chip chain, which is too costly and overburdened for most new chip factories. Global chip giants such as Intel, Nvidia (NVDA.US.) and AMD (AMD.US) are known to be located nearby.
Meanwhile, applied materials research and design executives will also attend the summit from customers, which will also be attended by U.S. Vice President Kamala Harris.
The new factory construction aims to accelerate improvements in the way chips are made in the U.S. and help the chip business grow into a trillion-dollar market this decade. the EPIC center, whose name stands for Equipment and Process Innovation and Commercialization, will let chip makers try out new machines in close proximity to complete production lines.
This will make it faster and easier to adapt new chip production technologies, Dickerson said, adding that at the same time, academic institutions will have access to cutting-edge research equipment. The overall goal is to shorten the 10 to 15 years it takes for academic research areas to get to the factory floor. The center will also help attract and train the workers the industry needs to operate fabs and design chips, he said.

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