Applied Materials, Micron Launch $5B EPIC AI Memory Development Partnership
Applied Materials and Micron will co-develop next-generation DRAM, HBM and NAND for energy-efficient AI systems, leveraging Applied’s new $5 billion EPIC Center and Micron’s Boise R&D hub. A structural memory shortage projected to last until 2028 is boosting demand across the memory sector.
1. Partnership Announcement
Applied Materials has entered a joint development agreement with Micron to co-develop next-generation DRAM, high-bandwidth memory and NAND storage tailored for energy-efficient AI applications. The collaboration will leverage Applied Materials’ newly opened $5 billion EPIC Center in Silicon Valley alongside Micron’s R&D hub in Boise, focusing on materials engineering, process technologies and advanced packaging.
2. Market Context
A persistent memory shortage is expected to last until 2028, driven by surging AI workloads and limited HBM supply. Micron has already committed its entire 2026 HBM output through multi-year contracts, providing significant revenue visibility and amplifying the need for advanced equipment and materials solutions.
3. Growth Outlook
Applied Materials projects semiconductor equipment revenue growth exceeding 20% in calendar 2026, fueled by accelerating AI infrastructure investments. This partnership positions the company at the forefront of the memory sector’s expansion and supports long-term demand for its advanced manufacturing technologies.