Applied Materials Invests $200 Million in Arizona Facility, Supports US Chip Manufacturing with Apple and Texas Instruments.

Applied Materials has joined Apple and Texas Instruments in strengthening US chip manufacturing. Applied is supplying American-made equipment to TI's US factories for Apple products, and investing $200 million in an Arizona factory, adding to the $400 million invested in US manufacturing over the past five years. The move aims to bolster the US semiconductor supply chain and support the country's AI era.

Applied Materials (NASDAQ: AMAT) has joined Apple and Texas Instruments (TI) in bolstering the US semiconductor supply chain by investing $200 million in a new Arizona factory. This move comes as part of a broader strategy to support the country's AI era and strengthen domestic manufacturing capabilities.

The investment, which adds to the $400 million already invested in US manufacturing over the past five years, underscores Applied Materials' commitment to the US semiconductor industry. The new Arizona facility will supply American-made equipment to TI's US factories, which in turn produce components for Apple products [1].

The move aligns with the broader trend of increasing US semiconductor manufacturing. Apple recently announced a $600 billion investment in the US, including a new American Manufacturing Program (AMP) that aims to bring more of Apple's supply chain and advanced manufacturing to the US. Apple's partnership with Applied Materials is a key component of this initiative [2].

Analysts have mixed views on Applied Materials' stock. While Goldman Sachs maintains a Buy rating with a price target of $225, other analysts have differing opinions. Redburn-Atlantic downgraded the stock to Neutral, citing concerns about market share loss in the Physical Vapor Deposition segment, while Morgan Stanley maintained an Equalweight rating with a price target of $169 [1].

Despite these mixed views, Applied Materials' investment in the US semiconductor industry is a significant development. The company's strong financial position, with a gross profit margin of 48.1% and a return on equity of 36%, positions it well to support the growth of the US semiconductor sector [1].

References:
[1] https://za.investing.com/news/analyst-ratings/goldman-sachs-maintains-applied-materials-stock-rating-at-buy-with-225-target-93CH-3819478
[2] https://www.apple.com/newsroom/2025/08/apple-increases-us-commitment-to-600-billion-usd-announces-ambitious-program/