In Silicon Valley’s newest R&D hub, Applied Materials and SK Hynix join forces to push memory innovation for the AI era as global chip shortages intensify.
Applied Materials has announced a research and development (R&D) partnership with South Korea’s SK Hynix, aimed at advancing next‑generation memory technologies amid rising global demand.
Under the agreement, engineers from both companies will collaborate at Applied Materials’ Equipment and Process Innovation and Commercialisation (EPIC) Centre, a $5 billion facility in Silicon Valley scheduled to open later this year.
The partnership will focus on materials innovation, process integration and advanced packaging, with particular emphasis on high‑bandwidth memory for artificial intelligence workloads. It is intended to accelerate validation cycles and support manufacturing‑relevant solutions for future memory products.
SK Hynix’s initial programmes will explore new materials and complex integration schemes, while leveraging Applied Materials’ R&D capabilities in Singapore to address challenges in advanced 3D packaging.
The EPIC Centre has been positioned as the largest US facility dedicated to collaborative R&D in semiconductor process technology and equipment. Samsung Electronics and Micron have already joined as partners, making SK Hynix the latest addition to the consortium.
Seon Yong Cha, Chief Technology Officer at SK Hynix, emphasised that advancing memory technology for the AI era would demand new approaches to wafer fabrication equipment.
He noted that partnership with Applied Materials’ engineers at the EPIC Centre would enable faster learning cycles and provide manufacturing‑relevant validation for next‑generation AI memory solutions.
The collaboration comes against the backdrop of a global memory shortage, driven by surging demand from data centres and AI applications.
Industry analysts note that manufacturers have shifted capacity away from consumer electronics towards higher‑margin products, contributing to price increases across automotive and personal electronics sectors.
Applied Materials has been developing the EPIC Centre for three years. Although the company applied for CHIPS Act funding to support construction, the request was denied in 2024.
The facility is expected to provide earlier access to Applied’s R&D portfolio, enabling faster innovation cycles and high‑volume manufacturing readiness.
