Applied Materials to co-develop AR optics with EssilorLuxottica; market to reach $329.73B by 2035
AMAT•Applied Materials has entered a joint development agreement with EssilorLuxottica to advance next-generation AR optics platforms through waveguides, adaptive lenses and materials innovations. The global semiconductor equipment market is projected to grow from $138.64 billion in 2025 to $329.73 billion by 2035 at a 9.05% CAGR.
1. Strategic AR Optics Collaboration
Applied Materials and EssilorLuxottica have formalized a long-term joint development agreement to accelerate commercialization of intelligent optical systems for AR and AI-powered smart eyewear. This partnership leverages Applied Materials’ materials engineering and waveguide expertise alongside EssilorLuxottica’s lens and smart eyewear leadership.
2. Technology Focus Areas
The collaboration will target advanced optical components including waveguides for image projection, light-adaptive and electro-active lenses for dynamic tinting, and encapsulation methods to preserve AR display performance. Research will take place at a dedicated lab on Applied Materials’ Silicon Valley campus.
3. Semiconductor Equipment Market Outlook
The global semiconductor equipment market is estimated at $138.64 billion in 2025 and is forecast to expand to $329.73 billion by 2035 at a 9.05% CAGR. Wafer fabrication equipment remains dominant, while testing, inspection and metrology segments are anticipated to post the fastest growth rates.
