Applied Materials targets packaging growth
Applied Materials expects advanced packaging revenue to grow by more than 50% in 2026, driven by rising demand for AI chips, high-bandwidth memory, and 3D chiplet integration.
Applied Materials is strengthening its position in advanced packaging as artificial intelligence drives demand for higher-performance semiconductor devices and more sophisticated packaging technologies.
The company expects its advanced packaging business to grow by more than 50% in 2026, supported by increasing adoption of high-bandwidth memory (HBM), 3D chiplet stacking, and advanced packaging solutions for AI accelerators.
Applied Materials also continues to expand its packaging portfolio, including its planned acquisition of the NEXX business from ASMPT.
The combined capabilities are expected to support the production of larger, more energy-efficient AI chips through technologies spanning deposition, etch, lithography, electrochemical deposition, and metrology.
The company's packaging strategy is further supported by collaborations such as its EPIC Center partnership with SK hynix, which focuses on next-generation DRAM, HBM, and 3D advanced packaging technologies.
As AI infrastructure investment accelerates, Applied Materials expects advanced packaging, alongside leading-edge foundry-logic and DRAM manufacturing, to remain among the primary drivers of wafer fabrication equipment spending through 2026 and 2027.
