Applied Material To Inject $4B For Chip R&D Center In Silicon Valley

Applied Materials Inc AMAT disclosed an investment of around $4 billion for creating the world's largest and most highly advanced research facility, Equipment and Process Innovation and Commercialization (EPIC) Center, in Silicon Valley.
The company expects to invest over the next seven years in building the EPIC center at its campus and expects subsidies from the government under the CHIPS and Science Act.
The new innovation center is expected to finish by early 2026 and will host around $25 billion of R&D work in the first 10 years of operations.
The multi-billion dollar R&D platform, which will be the size of over three American football fields, will create up to 2,000 new engineering jobs in Silicon Valley and probably another 11,000 in other industries.
The EPIC center will facilitate chipmakers to have dedicated space within an equipment supplier facility and provide early access to next-generation processes and tools much before equivalent processes are installed at their facilities.
Major chipmakers, including Advanced Micro Devices Inc AMD, International Business Machines Corp IBM, Intel Corp INTC, Taiwan Semiconductor Manufacturing Co Ltd TSM, and Western Digital Corp WDC showed their support to Applied Materials.
The new facility will also allow university researchers to work with industry professionals and boost the semiconductor industry talent.
The company received alliances from major universities such as the Massachusetts Institute of Technology, the State University of New York, and the University of California, Berkeley.
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Price Action: AMAT shares are trading higher by 0.03% at $126.99 on the last check Monday.