Applied Materials Plans Chip Research Center in Silicon Valley

Santa Clara, California-based Applied Materials, which makes equipment used to produce semiconductors, has announced plans to invest up to $4 billion in a research facility in Silicon Valley. The Equipment and Process Innovation and Commercialization (EPIC) Center, which will be built over seven years, aims to bring chipmakers and universities together to collaborate on innovations that will result in more powerful chips. “For the first time, chipmakers can have dedicated space within an equipment company’s R&D fab, providing early access to next-generation processes and equipment to accelerate product roadmaps,” according to Applied Materials.

“Silicon Valley hasn’t seen a comparable semiconductor construction project in more than 30 years,” reports The New York Times, adding that the project will create up to 2,000 engineering jobs.

Part of the funding will come from the CHIPS Act, a $52 billion federal package passed by Congress in 2022 to help fuel U.S. processor manufacturing, reducing dependence on Asian suppliers.

“Silicon Valley got its name from computer chips, but no longer plays a central role in shaping how they are made,” NYT writes, noting that manufacturing has migrated to less expensive locations, primarily offshore. “Applied Materials is betting that technical talent at nearby universities and the local companies that design chips will spur innovation quickly, making up for cost differences with other locations,” NYT says.

“We’re all-in as an asset to industry and to the nation as we seek to regain global pre-eminence in semiconductor manufacturing, research and development,” Arizona State University president Michael Crow said in a statement that projects the 180,000 square foot facility will be completed by 2026, with incremental capital investments continuing through 2030.

Applied describes “a two-pronged approach” that will see university researchers pushing the envelope alongside industry professionals in the new EPIC Center, while Applied — which already has a relationship with Arizona State University — builds a network of industrial-quality satellite labs at academic facilities.

Companies including AMD, IBM, Intel, Micron, Nvidia, Samsung, TSMC and Western Digital have all expressed support for the project.

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