Applied Materials CFO says government-backed foundry moves to not change forecast
FILE PHOTO: A smartphone with a displayed Applied Materials logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
Applied Materials CFO Brice Hill said on Thursday recent news at chipmakers' foundry units including Intel will not change its forecast for high-end chipmaking tools demand.
The U.S. government's move to take about 10 per cent equity stake in Intel, which is a customer of Applied Materials, sparked questions about the outlook for corporate America after President Donald Trump said he plans to do other similar deals.
When asked at the Deutsche Bank Technology Conference whether government incentives for chipmakers would boost Applied's demand forecast, Hill said such support may shift where factories are built but would not increase overall demand.
"We don't think anybody's going to build extra fabs that don't have designs."
He added more competition could slightly lower average factory use, but not enough to change Applied's five-year forecast.
