April 8 (Reuters) - Applied Materials ( AMAT ), the

largest maker of semiconductor equipment in the U.S., may

postpone or abandon its plans to build a $4 billion research and

development facility in Silicon Valley due to a lack of

government funding, the San Francisco Chronicle reported on

Monday citing sources familiar with the matter.

The Biden administration said last month it would scrap

plans to fund the program from the $52.7 billion Chips and

Science Act due to "overwhelming demand" for funding awards to

subsidize chip production.

Applied Materials ( AMAT ) did not immediately respond to a Reuters

request for comment.

President Joe Biden had signed the bill in August 2022 amid

a global shortage of chips, in a bid to bolster U.S.

competitiveness with China in science and technology.

The measure aimed to subsidize U.S. chip manufacturing and

expand research funding to address a recurrent shortfall that

had harmed a variety of sectors, from cars and weaponry to

washing machines and video games.

Applied Materials ( AMAT ), a strong candidate for a research award

from the program, announced its plans for the California

research center in May 2023 to speed up advances in

semiconductor manufacturing.