Applied Materials announced on Tuesday that it will collaborate with Micron Technology and SK Hynix to develop next-generation chips critical for artificial intelligence and high-performance computing.
Micron and SK Hynix will serve as founding partners of Applied Materials' research center, known as the Equipment and Process Innovation and Commercialization Center (EPIC), to advance these chips.
Applied Materials stated that its EPIC center plans to invest $5 billion in semiconductor equipment research and development, with capital expenditure expected to reach that amount as customer projects commence.
These announcements come as U.S. tech companies such as OpenAI, Google under Alphabet, and Microsoft rapidly build AI infrastructure, driving up demand for memory chips, leading to supply constraints and rising prices.
The world's top three memory chip manufacturers—Samsung of South Korea, SK Hynix, and Micron—have all indicated they are working to meet the growing demand.
Major U.S. technology firms are projected to spend at least $630 billion this year on AI infrastructure development.
The collaboration between Applied Materials and Micron Technology will focus on advancing DRAM, high-bandwidth memory, and NAND, leveraging expertise from both Applied Materials' EPIC center and Micron's Boise Innovation Center in Idaho.
The partnership with SK Hynix will emphasize improving memory chip materials, process integration, and advanced 3D packaging for next-generation DRAM and HBM at the EPIC center.
Applied Materials had previously indicated in 2023 that it would invest $4 billion in the research center, which is expected to become operational by 2026.
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