The US chip equipment major will build a 140-acre research park and expand its India supply chain 10-fold as New Delhi pushes to build a wider semiconductor ecosystem
US chip equipment giant Applied Materials will invest $5 billion in India over the next decade as the country expands its semiconductor ecosystem beyond chip fabrication.
The company announced the investment on Thursday. It will include a new 140-acre research and development park in India to strengthen the company’s R&D capabilities and bring new semiconductor technologies to the country.
Prabu Raja, president of Applied Materials’ Semiconductor Products Group, said the company will also expand its India-based supply chain by 10 times. It plans to bring more of its global suppliers to India as part of the expansion.
Applied Materials’ India workforce has grown fourfold over the past decade to more than 7,000 employees, Raja said. The company will also focus on developing semiconductor talent in India.
The company already has a growing presence in the country, with semiconductor equipment design, testing, validation and R&D capabilities in Bengaluru.
The investment comes as India steps up efforts to build a broader semiconductor industry. The government’s expanded India Semiconductor Mission 2.0 aims to develop the entire semiconductor value chain, including chip design, materials, chemicals, gases, packaging and talent.
The announcement comes shortly before Prime Minister Narendra Modi inaugurated SEMICON India 2026 in New Delhi. The three-day event brings together around 600 companies from 52 countries.
More from BusinessGlobal semiconductor companies including ASML, Lam Research, Tokyo Electron, Teradyne, Infineon, NXP, Micron and Applied Materials are participating in the event.
Under the first phase of India’s semiconductor programme, the government approved 12 projects with a combined investment of around Rs 1.64 lakh crore. The projects cover silicon and compound semiconductor fabs, display fabrication and advanced packaging. Three of these projects have since started commercial production.
The government has also approved 24 semiconductor design projects under its Design Linked Incentive scheme. Another 105 startups and MSMEs have received support for electronic design automation tools.
