Applied Materials expects sustained demand for wafer fab equipment as global AIartificial intelligence infrastructure expands and chipmakers scale capacity for increasingly compute-intensive workloads. The company says this growth cycle is being driven not just by generative AIartificial intelligence, but also by agentic and physical AIartificial intelligence applications, all of which require more silicon and more investment in advanced manufacturing capacity.
The company forecasts that leading-edge foundry-logic, DRAM1. dynamic random access memoryMemory technology or system for temporarily or permanently storing digital information.2. dynamic random-access memoryDRAM is a volatile memory technology and advanced packaging will account for about 75 percent of WFEwafer fab equipmentWFE refers to the production equipment used to manufacture semiconductor wafers. growth from 2025 to 2030. Applied Materials says it holds number-one process equipment positions in all three segments and is aiming to add more than 2 percentage points of WFEwafer fab equipmentWFE refers to the production equipment used to manufacture semiconductor wafers. market share over that period.
To help customers ramp new process nodes and improve yield, output and cost, Applied Materials is relying on its eBeam technology and advanced service offerings. The company says its eBeam portfolio has the highest resolution and fastest imaging capabilities in the industry and is expected to generate $2 billion in revenue in calendar 2026. Service revenue is projected to rise by more than 20 percent this year and to exceed $12 billion by 2030.
Applied Materials also plans to more than double its R&D lab and manufacturing capacity by 2030. The company recently opened its Equipment and Process Innovation and Commercialization, or EPIC1. Equipment and Process Innovation and CommercializationApplied Materials uses this name for its new collaborative R&D center.2. Electronics, Photonics and Integrated CircuitsEPIC names the collaboration center unveiled by Applied Materials., Center in Silicon Valley, which it describes as the world’s largest facility dedicated to collaborative semiconductor process technology and manufacturing equipment R&D. Fifteen EPIC1. Equipment and Process Innovation and CommercializationApplied Materials uses this name for its new collaborative R&D center.2. Electronics, Photonics and Integrated CircuitsEPIC names the collaboration center unveiled by Applied Materials. Center partnerships have already been announced with chipmakers, systems companies, equipment partners and universities, alongside manufacturing expansions in Austin, Singapore and Treviso.
The outlook ties Applied Materials’ investment plan to a broader expectation that WFEwafer fab equipmentWFE refers to the production equipment used to manufacture semiconductor wafers. spending will grow faster through 2030 than over the past decade. The company says the combination of AIartificial intelligence-related demand, process innovation and expanded service revenue should support both higher operating leverage and continued growth.