The chip-equipment maker creates a fund to invest in companies trying to develop alternative manufacturing methods for semiconductors and optical communications components.
With the fund, Applied Materials joins Intel, among major technology companies, in offering venture capital to start-ups. Applied Materials' Ventures 1 fund will focus on companies on the "leading edge of scientific and technical breakthroughs that can positively impact the semiconductor industry," the company said.
Despite the VC downturn, some tech giants are still funding start-ups. Intel is the most active. Intel Capital funded 13 deals in the third quarter, ranking third behind J.P. Morgan Partners with 16 deals and Mellon Ventures with 14 deals, according to Growthink.