Understanding Applied Materials Company through a Building

Applied Materials’ initiative is its 'Net Zero by 2040 Strategy', aiming to achieve decarbonization in line with the 1.5°C pathway outlined in the Paris Agreement. While ambitious, the challenge lies in the fact that 99% of the company’s carbon emissions originate upstream in its supply chain and downstream from customers’ use of its products. In other words, internal emission reductions alone have limited impact—it must engage both suppliers and customers in collective action. Latest data shows that since 2022, Applied Materials has reduced its Scope 3 emissions by 24%, equivalent to approximately 6 million metric tons of CO₂e. Globally, its renewable electricity usage rate stands at 73%, reaching 100% in the U.S., while its Xi’an facility in China achieves an 85% clean energy usage rate. Product-level improvements are more direct: since 2019, energy efficiency per wafer processed across all Applied Materials’ semiconductor products has improved by 13%. Though seemingly modest, this percentage translates into substantial cumulative energy savings—given that billions of wafers are produced globally each year. Its newly launched ECO (Engineering Change Order) service helps customers measure and optimize power consumption, directly reducing carbon emissions. In 2024, through component refurbishment and recycling, Applied Materials recovered 136,000 chamber kits—contributing meaningfully to the circular economy. The company has also set a '3x30 Goal': by 2030, reduce equivalent energy use, chemical impact, and cleanroom footprint requirements—each by 30%. This target is far from conservative; its achievability hinges on tangible progress over the coming years. Most commendably, Applied Materials’ sustainability philosophy is rapidly scaling globally. In Singapore, its Tampines Industrial Building earned the Building and Construction Authority’s Green Mark Platinum certification—the highest local environmental standard. In Bangalore, India, its Validation Center Laboratory received LEED Gold certification from the U.S. Green Building Council. These certifications demand sustained operational commitment—not just one-time investments. In the U.S., Applied Materials established the 'Applied Materials Power Fund', supporting 109 scholars in 2024, with emphasis on materials science and sustainability research. In Silicon Valley, it is constructing the Equipment & Process Innovation and Commercialization (EPIC) Center, scheduled to begin operations in the second half of 2026. As planned, this will be the world’s largest and most advanced collaborative R&D center for semiconductor process technologies and manufacturing equipment. These initiatives reflect Applied Materials’ strategic outlook: competition is no longer solely about technology and cost—it increasingly hinges on sustainability performance. Companies that can maintain production capacity while controlling carbon emissions gain greater credibility among customers and industry partners. Markets are responding positively. Forbes named Applied Materials to its 'Net Zero Leaders' list; Barron’s recognized it as one of the 'Most Sustainable Companies'; and Fortune ranked it among the 'World’s Most Admired Companies'. While such rankings inevitably involve commercial considerations, they nonetheless signal growing industry recognition of Applied Materials’ sustainability investments.

Global Policy Evolution and Innovation Models in the New Materials Industry

Due to differences in national conditions—such as industrial advantages—countries vary significantly in how they define and categorize 'new materials', especially in their prioritized development directions. Coordinating new materials R&D is a key government function, and one strategic objective is to secure stable, safe access to critical raw materials—the foundational enablers of key technologies and industries. National innovation system contexts—including core institutions—drive the formulation and evolution of new materials strategies and roadmaps. Enabling and foundational technologies—especially in materials science, manufacturing, and information and communications technologies—as well as innovation infrastructure, constitute the bedrock of new materials development. Materials innovation is vital across numerous technological applications and profoundly influences downstream products. New materials underpin other critical emerging technologies, enabling technologies, and major breakthroughs. Their advancement addresses innovation needs and competitive challenges in key industrial sectors and plays a pivotal role in tackling major socioeconomic challenges—and in realizing advanced, high-value manufacturing. Consequently, national governments must place top priority on top-level design for the materials industry. U.S. Model and Policies The U.S. places strong emphasis on the Materials Genome Initiative (MGI) strategic planning; has established a relatively robust venture capital mechanism; maintains a comprehensive legal framework for protection; and has designed a powerful international industrial restructuring mechanism. Key U.S. agencies involved include the Department of Defense (DoD), Department of Energy (DoE), National Institutes of Health (NIH), National Institute of Standards and Technology (NIST), National Science Foundation (NSF), and the National Academies. Key characteristics include: (1) Prioritization by application domain rather than specific material types, driven by performance requirements; (2) Clear mission-oriented mandates for sponsoring agencies (e.g., NASA)—with explicit goals and budgetary targets; and (3) Proactive front-end investment to prevent bottlenecks in critical materials, including support for substitute materials and technologies. Recent U.S. policy trends: Overall, since the global financial crisis, U.S. strategic deployment has centered on advancing domestic manufacturing. At the operational level, this translates into diverse policy instruments deployed within a functional industrial policy framework to support R&D in advanced manufacturing—tools carefully calibrated to circumvent WTO subsidy and countervailing duty rules, thus offering 'invisible' industrial support. Recently, however, this approach has shifted from implicit to explicit, with intensified, targeted industrial policies now actively promoted in critical domains such as semiconductors and rare earths. The U.S. aims to collaborate with allies to shape international rules and strengthen onshoring of supply chains—meaning both the density and intensity of its industrial policies will continue to rise. Japan’s Model and Policies Japan emphasizes long-term national science and technology basic plans; maintains highly efficient industry–government–academia–research collaboration mechanisms; focuses on holistic, systemic technology strategy roadmaps; and pursues innovation cluster development from multiple angles and dimensions. Key Japanese science and technology policy institutions include the National Institute of Advanced Industrial Science and Technology (AIST), Japan Science and Technology Agency (JST), and National Institute for Materials Science (NIMS). Key features of Japan’s new materials innovation model include: (1) Industry alliances (keiretsu-style structures) featuring tightly integrated buyer–supplier relationships; (2) Leveraging domestic strengths—such as nanotechnology—and emphasizing interdependence across its 'Four Key Domains'; and (3) Prioritizing international cooperation, particularly with the U.S. and the EU.

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