Silicon Valley, cradle of computer chips, gains big new research center

Silicon Valley got its name from computer chips, but no longer plays a central role in shaping how they are made. A major supplier to the industry hopes to change that.

Applied Materials, the biggest maker of machines for producing semiconductors, said Monday that it planned to build a massive research facility near its hometown, Santa Clara, California, to allow chipmakers and universities to collaborate on advances to make more powerful chips. Silicon Valley hasn’t seen a comparable semiconductor construction project in more than 30 years, industry analysts say.

The company expects to invest up to $4 billion in the project over seven years, with a portion of that money coming from federal subsidies, while creating up to 2,000 engineering jobs.