A semiconductor manufacturer will invest $4 billion in a new plant in California

The White House said Monday that Applied Materials, a semiconductor manufacturing business, will invest up to $4 billion in new research and a chipmaking facility in California.

According to senior administration officials, Applied Materials will establish the Equipment and Process Innovation and Commercialization (EPIC) Centre for development with the goal of designing the next generation of tools for semiconductor manufacturing, including in collaboration with leading chipmakers who will eventually use those tools in their factories.

Vice President Harris will make the announcement and deliver remarks at Applied Materials in Sunnyvale, California, on Monday. Officials said she will also meet with leaders from major semiconductor manufacturing, design, and supply chain companies to encourage them to invest in America.

According to officials, the implementation of the CHIPS and Science Act, which President Biden signed into law in August, has fueled such expenditures and prompted the private sector to take up.

During the COVID-19 pandemic, supply chain interruptions highlighted the semiconductor industry’s vulnerability. Since then, the president has been focused on semiconductors and American manufacturing, particularly on not relying on and keeping stiff rivalry with China.

According to officials, private corporations have announced $470 billion in manufacturing and sustainable energy investments in the United States since the start of the Biden administration, including more than $200 billion in semiconductor manufacturing.

Other investments include IBM’s $20 billion investment in New York for designing and manufacturing semiconductors, Intel’s $20 billion investment in Ohio for semiconductor facilities, and Micron’s $20 billion investment in New York for a megafab facility, among others.