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Applied Materials expects copper wiring to persist for three more nodes in physical vapor deposition market
Tuesday, March 3, 2026 at 09:09 AM
Applied Materials expects to maintain its dominant market share in physical vapor deposition equipment as copper wiring is projected to remain the industry standard for at least three more technology nodes.
Context
Applied Materials recently reinforced the longevity of its Physical Vapor Deposition (PVD) franchise, asserting that copper wiring will remain the industry standard for at least three more nodes. This guidance addresses investor concerns that copper might be rapidly replaced by alternative materials like ruthenium or molybdenum. By integrating a new ruthenium-cobalt (RuCo) binary liner into its Endura platform, the company has enabled copper to scale to the 2nm node and beyond, reducing electrical resistance by up to 25% and effectively preserving its dominant market moat.
This technological extension is critical as wiring complexity has become a primary bottleneck for AI and GPU performance. Applied Materials has seen its served available market for wiring triple between the 7nm and 3nm nodes, now representing a revenue opportunity of approximately $6 billion per 100,000 wafer starts. With the introduction of backside power delivery, this opportunity is projected to reach $7 billion, securing a high-margin profit stream for the company as it maintains leadership over the semiconductor interconnect roadmap through the end of the decade.
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