Applied Materials $AMAT to invest up to $4 billion in semiconductor tooling research center

Leading chip manufacturing equipment manufacturer Applied Materials has announced an investment in a new facility in California that will be dedicated to research on semiconductor manufacturing tools.

Applied Materials will invite chipmakers and universities to collaborate on the new research facility, which is expected to be completed by 2026. The company will invest up to US$4 billion in the centre, where experiments with its equipment will take place.

This collaborative model could reduce chip development time by up to 30%, according to the company. The drive to make faster chips by shrinking transistors is making manufacturing increasingly complex and running into physical barriers. As a result, chipmakers are turning to new materials and creative engineering to push the industry forward.

The company unveiled the plan at a time when many companies are interested in federal incentives in the United States that have provided $53 billion to boost the country's semiconductor industry. Applied Materials added that it plans to build the research facility regardless of what government support it receives, but the size and pace of the build-out depends on it.