Applied Materials Inc. (NASDAQ: AMAT) announced a long-term collaboration agreement with SK hynix Inc. to develop next-generation DRAM and high-bandwidth memory technologies for artificial intelligence applications.

The partnership will operate through Applied Materials' EPIC Center in Silicon Valley, scheduled to open this year. Engineers from both companies will work together on materials engineering and advanced packaging innovations for memory architectures beyond current production nodes.

The collaboration focuses on exploring new materials, complex integration schemes and HBM-class advanced packaging to improve performance and manufacturability of future memory architectures. SK hynix will also utilize Applied Materials' advanced packaging research capabilities in Singapore.

"Applied Materials and SK hynix share a long history of working together to improve the energy-efficient performance of advanced memory chips through innovations in materials engineering," said Gary Dickerson, president and CEO of Applied Materials.

SK hynix becomes a founding partner of the EPIC Center, which represents a $5 billion investment in semiconductor equipment research and development. The facility is designed to reduce commercialization time for breakthrough technologies from research to manufacturing.

"The continued scaling of AI systems is driving unprecedented demand for energy-efficient memory technologies," said Nohjung Kwak, president and CEO of SK hynix. "One of the biggest hurdles in AI progress is the growing disconnect between memory speeds and advances in processors."

The EPIC Center will provide chipmakers with earlier access to Applied Materials' research portfolio and accelerated technology transfer into high-volume manufacturing. The center aims to deliver faster learning cycles and manufacturing-relevant validation for next-generation AI memory technologies.

Information is based on a company press release statement.