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SANTA CLARA/SINGAPORE - Applied Materials, Inc. (NASDAQ:AMAT), a $160 billion market cap semiconductor equipment leader with a "GREAT" InvestingPro financial health rating, and GlobalFoundries announced Tuesday a strategic collaboration to establish a waveguide fabrication facility in Singapore focused on advancing photonics technology for artificial intelligence applications.
The new facility will develop waveguide components for next-generation AI applications, including augmented reality glasses and other optical systems requiring high efficiency and performance. Applied Materials, maintaining an impressive 48.5% gross profit margin, will develop the components with GlobalFoundries serving as the high-volume manufacturing partner.
"Photonics is rapidly becoming a critical enabler of augmented reality glasses that put humans at the center of the AI experience," said Dr. Paul Meissner, Vice President and General Manager of Applied Materials’ Photonics Platforms Business.
Yew Kong Tan, senior vice president at GlobalFoundries, stated the partnership will "deliver innovative technology solutions that will drive and scale adoption of next generation devices."
The collaboration aims to leverage Singapore’s growing photonics ecosystem, which includes materials development, sensors, integration, assembly, testing, and applications.
The companies did not disclose financial terms or specific production timelines for the facility in their press release statement.
Applied Materials is a materials engineering solutions provider for semiconductor and display technologies, while GlobalFoundries operates as a semiconductor manufacturer with facilities worldwide. Currently trading near its 52-week high of $215.70, Applied Materials shows strong momentum. Discover detailed insights and 14 additional ProTips with an InvestingPro subscription, including comprehensive analysis in our Pro Research Report.
In other recent news, Applied Materials announced a quarterly cash dividend of $0.46 per share, payable on December 11, 2025, marking an increase from $0.40 earlier this year. This move continues the company’s trend of raising dividends for eight consecutive years. Meanwhile, KeyBanc has raised its price target for Applied Materials to $220, maintaining an Overweight rating, despite concerns about demand headwinds in China affecting the company’s equipment sales. In contrast, Mizuho downgraded the stock from Outperform to Neutral, reducing its price target to $175 due to market share losses in key product segments. Cantor Fitzgerald, however, reiterated its Overweight rating and $200 price target, expressing a positive outlook amidst industry uncertainties. TD Cowen also maintained a Buy rating with a $200 price target, noting concerns about China wafer fabrication equipment and potential softness in foundry/logic sectors later in the year. These developments highlight the mixed analyst perspectives on Applied Materials’ future performance.
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