Applied Materials (NASDAQ:AMAT) plans to invest $5 billion in India over the next 10 years as the country seeks to expand its semiconductor industry beyond chip manufacturing into research, equipment development and supply chain operations.
The US semiconductor equipment manufacturer will establish a 140-acre research park in India to strengthen its research and development capabilities and introduce new technologies, according to Prabu Raja, president of the company’s Semiconductor Products Group.
Applied Materials also intends to increase the scale of its India-based supply chain tenfold and encourage additional international suppliers to establish operations in the country.
Raja said the company’s workforce in India had quadrupled over the past decade to more than 7,000 employees.
Applied Materials has been developing semiconductor equipment design, testing, validation and research capabilities in Bengaluru, which will form part of its broader expansion strategy.
Investment Announced Ahead of SEMICON India 2026
The announcement came ahead of Prime Minister Narendra Modi’s inauguration of SEMICON India 2026 in New Delhi.
The three-day industry event brings together approximately 600 companies from 52 countries, including ASML, Lam Research, Tokyo Electron, Teradyne, Infineon, NXP, Micron and Applied Materials.
The planned investment aligns with the government’s India Semiconductor Mission 2.0, which aims to develop a broader domestic semiconductor value chain.
The programme covers chip design, chemicals, materials, industrial gases and workforce development, alongside semiconductor fabrication.
India Expands Semiconductor Manufacturing and Design Capabilities
Under the first phase of India’s semiconductor programme, the government approved 12 projects representing approximately ₹1.64 lakh crore in total investment.
The projects cover silicon and compound semiconductor fabrication plants, display manufacturing and advanced semiconductor packaging. Three have begun commercial production.
The government’s Design Linked Incentive scheme has also approved 24 semiconductor design projects.
In addition, 105 startups and small and medium-sized enterprises have received support to access electronic design automation tools.
Applied Materials’ proposed investment would expand its existing operations in India while supporting the development of local research capabilities, semiconductor equipment expertise and supplier networks.