Applied Materials, Inc (NASDAQ:AMAT) is expanding its collaboration with Micron Technology Inc (NASDAQ:MU) to develop next-generation memory chips for AI.
They’re also investing heavily in U.S. semiconductor research and development.
Applied Materials, Micron Expand AI Memory Collaboration
Santa Clara, California-based Applied said it is working with Micron to develop new memory chips that can improve the energy efficiency and performance of AI systems.
The companies will combine research efforts at Applied’s EPIC Center in Silicon Valley and Micron’s innovation center in Boise, Idaho, to strengthen semiconductor development in the United States.
Teams from both companies are working together to develop new materials, manufacturing methods, and chip designs for future DRAM, HBM, and NAND memory used in AI systems.
The partnership also includes work on advanced chip packaging to support high-speed, low-power memory needed for demanding AI workloads.
$5 Billion EPIC Center To Accelerate Chip Innovation
Applied is also building a new $5 billion EPIC (Equipment and Process Innovation and Commercialization) Center in Silicon Valley.
The center, which will open this year, aims to shorten the time it takes to move new semiconductor technologies from early research to large-scale manufacturing.
The EPIC Center will give chipmakers earlier access to Applied’s research, faster development cycles, and quicker adoption of next-generation technologies in mass production.
The company said investment in the facility could grow to about $5 billion as customer projects begin.
Analysts See Strong Demand For Chipmaking Equipment
BofA Securities analyst Vivek Arya said strong demand for AI and advanced chips is driving a multi-year rise in spending on wafer fabrication equipment, benefiting companies such as Lam Research Corp (NASDAQ:LRCX) and Applied.
The analyst said the industry could see about $135 billion in wafer fabrication equipment spending in 2026, up 23% year-over-year, with the momentum potentially extending into 2027.
He added that demand — especially from foundry, DRAM, and NAND chip production — is pushing the growth.
Arya said the surge in demand is mainly driven by capacity expansion, positioning companies like Lam and Applied to benefit as chipmakers invest in new manufacturing equipment.
AMAT Price Action: Applied Materials shares were up 0.28% at $339.90 during premarket trading on Tuesday, according to Benzinga Pro data.
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