Applied Materials Is Denied US Chips Grant for $4 Billion Silicon Valley Project
- Company had hoped to use the money for research center
- US officials have disagreed over how to approach chip R&D
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Applied Materials Inc. was informed by US officials that it won’t be receiving Chips Act money for a long-anticipated research and development center, dealing a critical blow to a much-touted project in the heart of Silicon Valley.
The company had hoped to get US funding for the $4 billion facility in Sunnyvale, California — an effort it began promoting more than a year ago — through a program designed for large-scale chip manufacturing sites. But Commerce Department officials rejected it on Monday after concluding that the project didn’t qualify, according to people familiar with the matter.