The White House revealed that semiconductor manufacturing company Applied Materials is set to invest up to $4 billion in research and development, as well as a new facility in California dedicated to chipmaking.

The newly established Equipment and Process Innovation and Commercialization (EPIC) Center will spearhead the development of cutting-edge tools for semiconductor manufacturing. Applied Materials aims to collaborate with leading chipmakers to design the next generation of tools, which will eventually be utilized in their factories.

Vice President Harris is scheduled to visit Applied Materials in Sunnyvale, California, to deliver remarks on this significant investment. During her visit, she will also meet with executives from major semiconductor manufacturing, design, and supply chain companies, urging them to invest in America.

This notable investment by Applied Materials is largely driven by implementing the CHIPS and Science Act. Signed into law by President Biden in August 2022, this legislation has served as a catalyst for private sector investments, highlighting the vulnerabilities of the semiconductor industry due to supply chain disruptions experienced during the COVID-19 pandemic.

President Biden has been actively prioritizing semiconductors and American manufacturing, aiming to reduce reliance on other countries and maintain strong competition with China.

Since the start of the Biden administration, private companies have made substantial commitments to manufacturing and clean energy investments in the United States. These investments total a staggering $470 billion, with over $200 billion specifically allocated to semiconductor manufacturing.

Among the notable investments, IBM has pledged $20 billion for designing and manufacturing semiconductors in New York. Intel plans to invest $20 billion in semiconductor facilities in Ohio, while Micron intends to allocate $20 billion for a megafab facility in New York, among other ventures.

The significant financial commitments these industry leaders made underscore the semiconductor sector’s growing import and the United States’ determination to remain at the forefront of technological advancements.