Shares in Applied Materials (AMAT) edged higher early Tuesday after the chipmaking equipment maker announced Japan’s Advantest Corporation (ATEYY) as an innovation partner for its $5 billion research and development (R&D) center in Silicon Valley.
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Advantest, which is a Tokyo-based global leader in automatic test equipment for semiconductors, will join Applied Materials’ Equipment and Process Innovation and Commercialization Center (EPIC) to help chipmakers “bring new designs to market faster.” The Japanese company intends to achieve this by boosting the link between the production of front-end manufacturing technologies and back-end testing of chips and packages.
Applied Materials Expands Partnership for R&D Center
Applied Materials launched the EPIC Center in May 2023 to provide a platform for chipmakers, universities, and other ecosystem partners to collaborate on semiconductor process technology and manufacturing equipment R&D to accelerate the process it takes to develop and commercialize these foundational technologies.
To this end, Advantest has built a new, state-of-the-art Innovation Center on the R&D campus, Applied Materials noted in a statement, adding that the facility “will seamlessly connect” with its EPIC Center.
According to Doug Lefever, Group CEO at Advantest, the new facility will enable the firm to “collaborate faster and co-develop scalable and cost-effective testing methodologies for our customers’ next-generation devices.”
Applied Materials Rides on AI Boom
Applied Materials’ addition of Advantest comes months after Samsung Electronics (SSNLF) joined the EPIC Center as the first founding member. This is even as the U.S. chip gear giant races to make the center operational this year.
Shares in the California-based company have jumped over 52% year-to-date even as the AI boom continues to fuel demand for its chipmaking gear.
Is Applied Materials Stock a Good Buy?
On Wall Street, Applied Materials’ shares continue to enjoy a Strong Buy consensus rating from analysts. This is based on 25 Buys and one Hold issued over the past three months.
In addition, the average AMAT price target of $436.02 implies about 11% upside.
