AI data center silicon 60%… of which over 85% is foundry, DRAM, and packaging

Applied Materials CEO Gary Dickerson said silicon accounts for roughly 60% of AI data center capital costs, with more than 85% of that silicon spending going to advanced foundry logic, DRAM, and advanced packaging. He made the disclosure in the company's earnings materials released November 12, calling those three areas the most influential parts of the AI computing roadmap. Advanced foundry logic covers compute semiconductors, DRAM handles data-processing memory, and advanced packaging connects multiple chips. The breakdown matters because it signals where AI infrastructure budgets concentrate and which semiconductor segments stand to benefit most from data center buildouts. Investors will watch whether Applied Materials' equipment demand tracks that mix across foundry, memory, and packaging capacity expansions.