Applied Materials reports limited short-term semiconductor equipment supply amid AI demand

Applied Materials has announced that its ability to meet the short-term demand for semiconductor manufacturing equipment is extremely limited due to an explosion in demand driven by artificial intelligence (AI) and High Bandwidth Memory (HBM) requirements. During a media briefing in Seoul, company executives noted that current demand significantly exceeds supply, creating potential bottlenecks for memory manufacturers attempting to expand production capacity.

To address these supply chain challenges and accelerate innovation, the company is utilizing its EPIC (Engineering, Process, Integration, and Collaboration) platform. This collaborative channel involves equipment manufacturers, customers, and research institutions working together to predict future demand and speed up the commercialization of new technologies. Samsung Electronics and SK hynix are founding partners of the EPIC center located in Silicon Valley.

In South Korea, the company is establishing the Applied Collaboration Center Korea (ACC Korea) in Osan to focus on technical collaboration and mass production verification for domestic clients. Applied Materials expects advanced packaging revenue to increase by more than 70% this year as it develops solutions for HBM, such as hybrid bonding, to solve issues related to heat and energy efficiency.