Applied Materials was rejected for funding under the US government’s CHIPS and Science Act.
According to a report from Bloomberg, the company applied for funding to support the construction of a $4 billion facility in Sunnyvale, California, but was not successful in its bid.
When first announced in May 2023, Applied Materials said that the facility, dubbed the Equipment and Process Innovation and Commercialization (EPIC) Center, would be a research center dedicated to fostering advancements in semiconductor manufacturing, hosting approximately $25 billion of research work during its first decade.
The center was slated to open in 2026 but the company has reportedly now been informed by government officials that it won’t be receiving any funding under the CHIPS Act, leaving the center’s future uncertain.
The $280bn CHIPS and Science Act was approved by Congress in July 2022, with $52bn of the overall funding package designated as subsidies for US semiconductor manufacturers. Funding under the Act is allocated to companies by the Department of Commerce.
In May 2024, the US government announced it had extended its investigation into Applied Materials for allegedly facilitating the shipment of chip manufacturing tools to China without an export license. In a filing with the SEC, Applied Materials confirmed it had received an additional subpoena from the US Commerce Department’s Bureau of Industry, the third to come from that branch of government.
The investigation relates to claims that Applied Materials bypassed US sanctions by shipping hundreds of millions of dollars worth of semiconductor manufacturing equipment to the partly Chinese state-owned SMIC via a South Korean subsidy. The investigation is still ongoing and no information about when Applied Materials allegedly made the shipment in question has been disclosed.
There is no indication that the investigation into Applied Materials’ is linked to the company’s failed bid for CHIPS Act funding.
DCD has reached out to Applied Materials with a request for comment.
