Applied Materials, a tools supplier for semiconductor manufacturing company, has announced plans to invest $4bn to set up a new facility to accelerate chip research and development (R&D).

Completion of the Equipment and Process Innovation and Commercialization (EPIC) Center is anticipated by early 2026.

Applied said EPIC will serve as the central hub for over $25bn in company R&D investments within the initial decade of its operation.

The new facility, which will be located at Applied’s campus in Silicon Valley, is expected to create up to 2,000 new engineering jobs and some 11,000 jobs in other sectors.

Applied stated that the centre aims to expedite the adoption of novel manufacturing techniques, significantly reducing the time between concept to commercialisation.

It is expected to increase the success rate of innovations and improve the return on investment in R&D for the semiconductor industry.

Applied Materials president and CEO Gary Dickerson said: “This investment presents a golden opportunity to re-engineer the way the global industry collaborates to deliver the foundational semiconductor process and manufacturing technologies needed to sustain rapid improvements in energy-efficient, high-performance computing.”

The announcement comes after the US government approved the multibillion-dollar US Chips and Science Act to bring advanced chip production back to the US.

Applied’s new facility designed to engage with the proposed National Semiconductor Technology Center (NSTC), aimed at furthering semiconductor research, design, engineering, and advanced manufacturing.

 The investment, which will be made over seven years, is subject to receiving subsidies from the US government, Applied noted.