Applied Materials partners with Micron and SK Hynix to develop AI memory chips at $5B facility

Applied Materials forges partnerships with Micron and SK Hynix for AI memory chips

March 10 (Reuters) - Applied Materials (AMAT.O), opens new tab said on Tuesday it has partnered with memory chip companies Micron Technology (MU.O), opens new tab and SK Hynix (000660.KS), opens new tab to develop next-generation chips that are crucial for artificial intelligence and high-performance computing. Micron and SK Hynix will serve as founding partners at Applied Materials' research center to develop the chips, called Equipment and Process Innovation and Commercialization, or EPIC, Center. Applied Materials said its EPIC Center ⁠represents a planned $5 billion investment in semiconductor equipment research and development, with capital spending anticipated to scale over time to that amount as customer projects begin. The announcements come as rapid build-out of AI infrastructure by U.S. tech firms such as OpenAI, Alphabet's (GOOGL.O), opens new tab Google and Microsoft (MSFT.O), opens new tab drives demand for memory chips, tightening supply and pushing up prices. South Korea's Samsung (005930.KS), opens new tab, SK Hynix and Micron -- the world's three largest ⁠producers of memory chips -- have all said they were struggling to keep up with demand. Big Tech firms are expected to spend at least $630 billion to build AI infrastructure this year. With Micron, Applied Materials' partnership will focus on advancing ⁠DRAM, high-bandwidth memory and NAND, combining expertise from Applied's EPIC Center and Micron's innovation hub in Boise, Idaho. The partnership with SK Hynix will focus on ⁠improving materials for memory chips, process integration and 3D advanced packaging for next-generation DRAM and HBM at the EPIC Center. In 2023, ⁠Applied Materials had said it would spend up to $4 billion on the research center, which it had then estimated to come online in 2026. Reporting by Jaspreet Singh in Bengaluru; Editing by Sahal Muhammed Our Standards: The Thomson Reuters Trust Principles., opens new tab

Applied Materials, Micron Target AI Dominance With New 'Monster' Memory Chips - Applied Materials (NASDAQ:AMAT), Micron Technology (NASDAQ:MU)

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 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. Image: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Applied Materials forges partnerships with Micron and SK Hynix for AI memory chips

March 10 (Reuters) - Applied Materials said on Tuesday it has partnered with memory chip companies Micron Technology and SK Hynix to develop next-generation chips that are crucial for artificial intelligence and high-performance computing. Micron and SK Hynix will serve as founding partners at Applied Materials' research center to develop the chips, called Equipment and Process Innovation and Commercialization, or EPIC, Center. Applied Materials said its EPIC Center represents a planned $5 billion investment in semiconductor equipment research and development, with capital spending anticipated to scale over time to that amount as customer projects begin. The announcements come as rapid build-out of AI infrastructure by U.S. tech firms such as OpenAI, Alphabet's Google and Microsoft drives demand for memory chips, tightening supply and pushing up prices. South Korea's Samsung, SK Hynix and Micron -- the world's three largest producers of memory chips -- have all said they were struggling to keep up with demand. Big Tech firms are expected to spend at least $630 billion to build AI infrastructure this year. With Micron, Applied Materials' partnership will focus on advancing DRAM, high-bandwidth memory and NAND, combining expertise from Applied's EPIC Center and Micron's innovation hub in Boise, Idaho. The partnership with SK Hynix will focus on improving materials for memory chips, process integration and 3D advanced packaging for next-generation DRAM and HBM at the EPIC Center. In 2023, Applied Materials had said it would spend up to $4 billion on the research center, which it had then estimated to come online in 2026. (Reporting by Jaspreet Singh in Bengaluru; Editing by Sahal Muhammed)

Applied Materials, SK hynix Ink Long-Term Partnership to Advance AI Memory

Applied Materials and SK hynix are partnering to accelerate the development and deployment of advanced memory technology to meet the growing needs of AI and high-performance computing. The semiconductor-equipment maker said Tuesday that engineers from both companies will work together at Applied Material's research and development facility EPIC Center. The joint research and development programs will focus on new materials, complex integration schemes and packaging solutions to improve the performance and manufacturing of future DRAM and high-bandwidth memory technologies. "We are excited to have SK hynix join the EPIC Center as a founding partner, and we look forward to driving further breakthroughs together that accelerate commercialization of next-generation DRAM and HBM technologies for the AI era," Chief Executive Officer of Applied Materials Gary Dickerson said.

Applied Materials, Micron Partner to Develop Advanced Memory Chips for AI

Applied Materials and Micron Technology will partner to develop next-generation memory chips to power artificial-intelligence systems. The companies on Tuesday said the collaboration aims to strengthen the semiconductor innovation pipeline in the U.S., working together to advance high-bandwidth memory solutions, including DRAM and NAND memory, or dynamic random-access memory and not-and flash memory. The partnership will bring together advanced research and development capabilities from Applied's Equipment and Process Innovation and Commercialization Center--or EPIC Center, located in Silicon Valley--with Micron's manufacturing abilities. Micron, based in Boise, Idaho, is currently spending $50 billion to more than double the size of its 450-acre campus, including the construction of two new chip factories, or fabs. Applied CEO Gary Dickerson said the collaboration will deepen the companies' longstanding partnership. It comes amid a memory-chip shortage, and as the technologies play an increasingly pivotal role in supporting AI systems. "Memory and storage are essential enablers of AI, and sustained innovation in these technologies is critical to unlocking AI's full potential," Micron CEO Sanjay Mehrotra said.