Applied Materials Plans to Double Capacity as Super-Cycle Tool Demand Surges
Applied Materials aims to double manufacturing capacity to meet “super cycle” wafer fab equipment demand and secures suppliers for on-time tool delivery with customer forecasts extending up to two years. The company leads in leading-edge foundry/logic, DRAM and advanced packaging and is launching its EPIC initiative with Samsung.
1. Super-Cycle Demand and Capacity Scaling
Applied Materials Semiconductor Products Group president said customer wafer fab equipment demand has reached a “super cycle,” prompting the company to double pre-COVID manufacturing capacity, secure earlier supplier commitments and accelerate tool delivery schedules, with customers now issuing forecasts up to two years in advance.
2. Leadership in Strategic Growth Segments
Applied Materials holds the number one position in leading-edge foundry/logic, DRAM and advanced packaging equipment, while NAND and general computing segments show slower growth. It highlights its expertise in complex processes such as Gate-All-Around transistor steps and multi-layer copper wiring.
3. EPIC Initiative to Accelerate Co-Innovation
The EPIC initiative aims to reduce innovation-to-commercialization cycles from 10–15 years by enabling parallel development among universities, equipment makers and chipmakers. Applied Materials has partnered with Samsung under EPIC and expects additional collaborations with customers and research institutions soon.