Applied Materials is the world's largest semiconductor equipment company by revenue, supplying tools across nearly every major step in chip fabrication. Its product portfolio spans deposition, etch, ion implantation, rapid thermal processing, and metrology. Applied sells to every major foundry and memory manufacturer, and its equipment is present in virtually every advanced semiconductor fab operating today.

AI chip manufacturing at the leading edge has expanded Applied Materials' role in two ways. First, new chip architectures required for AI performance—including gate-all-around transistors at 2nm, backside power delivery networks, and advanced interconnects—require new deposition and etch capabilities where Applied has invested. Second, the advanced packaging used to assemble AI chips, particularly the CoWoS process bonding HBM memory to GPU dies, requires deposition and bonding equipment where Applied is increasingly engaged. As AI chip production has scaled, both the complexity and volume of Applied's addressable processes have grown.

In February 2025, Applied launched the SEMVision H20, a defect-review system using AI-based image recognition to identify and classify chip defects with greater speed and accuracy. Applied also advanced its Integrated Materials Solutions approach—co-optimizing multiple deposition and etch steps in a single system to reduce processing time and improve consistency. Revenue from advanced packaging tools and leading-edge logic equipment have been the primary AI-driven growth vectors.