Applied Materials could abandon $4bn US R&D project
Sources say Applied Materials might cancel its proposed Silicon Valley research unit because of a lack of government investment.
The Biden administration announced in March that it would no longer fund the construction or renovation of facilities for semiconductor research and development. Previously, the government had assigned USD 52.7 billion for domestic research and manufacturing of semiconductors. However, in a bill passed on March 23, it reallocated USD 3.5 billion to support facilities that produce microchips for the military.
This appears to have alarmed Applied Materials, and prompted speculation that it will abort its proposed Silicon Valley facility. Santa Clara-based Applied Materials had announced the project in May 2023, which would create up to 2,000 new engineering jobs and potentially 11,000 jobs in other industries. The company said its investment was contingent on receiving CHIPS and Science Act funding.
“We must not only build more domestic chip manufacturing capacity, but also maintain and extend R&D leadership in the foundational technologies that define how future chips will be made,” Ricky Gradwohl, a spokesperson for Applied Materials, said in a statement. “Applied Materials encourages the Administration and Congress to find a path forward to fund commercial semiconductor R&D and fulfill the promise of the CHIPS Act.”
