Applied Materials says goodbye to its venture fund

Applied Materials, the world's largest manufacturer of semiconductor equipment, will dissolve Applied Materials Ventures, an investment fund it set up in August 2001, according to a spokesman. The company invested roughly $23 million in the fund, which sought to invest in early-stage equipment companies.

Applied specializes in machines that spray chemicals onto silicon wafers and scrape off the excess. The high expense of semiconductor equipment--some individual machines can sell for as much as $15 million or more--have forced many chipmakers to split costs on factories. Because of the challenges in improving chips, however, new equipment companies continue to get venture investments, according to Dave Epstein, a partner at venture firm Crosslink Capital.