Applied Materials

Business Context

• FY2025 revenue grew 4% to $28.4B, with AI adoption driving substantial investment in advanced semiconductors and wafer fab equipment.
• Initial HBM equipment build-out on DRAM side reached approximately $700 million in 2024, supporting high-bandwidth memory production for AI chips.
• Applied forecasts datacenter electricity consumption will increase to as much as 12% of global total by 2030, reflecting equipment demand tied to AI infrastructure.

Commitments

• SBTi-validated targets: 50% reduction in Scope 1 and 2 emissions by FY2030 from FY2019 baseline; 100% renewable electricity by FY2030.
• Net-zero commitment by 2040.

Energy Strategy

A slow, minimalist procurement approach anchored by a single 2020 wind VPPA, with no tracked deals in the past five years despite rapid business growth and a 2030 renewable electricity deadline.

• Signed a 12-year, 50 MW virtual PPA with Apex Clean Energy for the White Mesa Wind Farm in Texas in 2020, operational since October 2021.
• Reached 73% renewable electricity globally by FY2024, including 100% in the US, suggesting reliance on unbundled RECs or utility green tariffs rather than PPAs.
• Boosted total renewable electricity by 11% in 2024, including a 48% increase in solar generation; 700 kW solar array at Tainan, Taiwan delivered 228,524 kWh in three months.
• No recent large-scale PPA activity despite a $28.4B revenue base and SBTi-validated 100% renewable electricity target by 2030, contrasting sharply with hyperscale tech peers.