Potential restructuring of R&D Facility by Applied Materials due to Lack of Government Funding.

There are reports that Applied Materials, a company that manufactures machinery for chip production in the United States, may postpone or cancel plans to build a new research and development center in Silicon Valley due to lack of funding from the US government under the CHIPS Act.

Previously, Applied Materials announced plans to build a new research and development center with a project value of around $4 billion, expected to create approximately 2,000 jobs and over tens of thousands of related positions. The company has applied for funding, citing it as necessary.

However, the United States has revised the funding conditions under the CHIPS Act, providing funds only for projects related to chip production processes. This means that projects such as setting up a research and development office without any production may not be eligible for funding. Applied Materials argues that the government should support not just production, but also research and development to ensure that America has the technology to create new chips.

Source: San Francisco Chronicle image by Applied Materials

TLDR: Applied Materials may cancel plans for a new research center in Silicon Valley due to lack of government funding under the CHIPS Act, which now only supports projects directly related to chip production processes.