Applied Materials, CEA-Leti Deepen Partnership To Accelerate Innovation In Specialty Chips – Applied Mat (NASDAQ:AMAT)

Long-term partners Applied Materials AMAT and CEA-Leti announced their plan Monday to expand their joint lab and develop materials engineering solutions focused on device innovations for chipmakers serving ICAPS markets (IoT, Communications, Automotive, Power, and Sensors).

Applied and CEA-Leti plan to expand the lab with the latest equipment and capabilities, including full-flow development of specialty devices, moving beyond individual process steps.

Additionally, the lab would be equipped with state-of-the-art advanced packaging tools to support heterogeneous integration of chips across different wafer types and process nodes, enabling entirely new classes of specialty devices for a range of next-generation applications.

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The joint facility features several Applied Materials wafer processing systems and CEA-Leti’s capabilities for evaluating the performance of new materials and device validation.

The upgraded lab will likely strengthen the chipmaking ecosystem in France by further expanding the technology hub in Grenoble, a leading site for collaborative innovation across government, academia, and industry.

The lab also marks an extension of Applied’s global EPIC Platform, a new high-velocity innovation model designed to accelerate the commercialization of new chip technologies.

Applied and CEA-Leti will leverage the R&D work across Applied’s global innovation centers to drive progress in specialty semiconductor technologies.

Applied Materials stock plunged 30% in the last 12 months as investors weighed the impact of the Trump administration’s tariff policies on the global semiconductor supply chain.

Applied Materials reported second-quarter revenue of $7.1 billion, up 7%, missing analyst estimates of $7.13 billion. The chip equipment manufacturer reported second-quarter earnings of $2.39 per share, beating analyst estimates of $2.31.

Applied Materials expects third-quarter revenue of $7.2 billion, plus or minus $500 million, versus estimates of $7.19 billion. The company expects third-quarter adjusted earnings to be between $2.15 and $2.55 per share versus estimates of $2.32. 

Price Actions: AMAT stock is trading higher by 3.20% to 176.05 at last check Monday.

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