April 8 (Reuters) - Applied Materials ( AMAT ), the
largest maker of semiconductor equipment in the U.S., may
postpone or abandon its plans to build a $4 billion research and
development facility in Silicon Valley due to a lack of
government funding, the San Francisco Chronicle reported on
Monday citing sources familiar with the matter.
The Biden administration said last month it would scrap
plans to fund the program from the $52.7 billion Chips and
Science Act due to "overwhelming demand" for funding awards to
subsidize chip production.
Applied Materials ( AMAT ) did not immediately respond to a Reuters
request for comment.
President Joe Biden had signed the bill in August 2022 amid
a global shortage of chips, in a bid to bolster U.S.
competitiveness with China in science and technology.
The measure aimed to subsidize U.S. chip manufacturing and
expand research funding to address a recurrent shortfall that
had harmed a variety of sectors, from cars and weaponry to
washing machines and video games.
Applied Materials ( AMAT ), a strong candidate for a research award
from the program, announced its plans for the California
research center in May 2023 to speed up advances in
semiconductor manufacturing.