Applied Materials denied funding

Applied Materials has been denied funding from the U.S. CHIPS and Science Act for its proposed $4 billion research and development center in Sunnyvale, California, marking a significant setback for the company. The U.S. Commerce Department determined that the project did not meet the necessary criteria for funding support, although specific reasons for the rejection were not provided. This decision suggests a broader trend where major semiconductor equipment manufacturers may struggle to receive direct subsidies under the CHIPS Act. Applied Materials initially aimed to seek funding through another program for commercial R&D facilities, but this initiative was abandoned due to disputes in Congress. The company is also currently under investigation for allegedly bypassing U.S. sanctions by exporting manufacturing equipment to China, although this is not linked to the funding denial. Following this news, Applied Materials' stock has seen a decline in premarket trading.