Applied Materials Announces $5 Billion India Investment Over Next Decade

Applied Materials plans to invest $5 billion in India over the next decade as it expands its operations in the country. The US semiconductor equipment company announced the investment during SEMICON India, a major semiconductor industry conference being held in New Delhi.

The three-day event brings together more than 600 companies and representatives from 52 countries, covering areas including semiconductor materials, chip design, fabrication and packaging. The conference comes as demand for chip production capacity rises globally, driven in part by increasing computing requirements linked to artificial intelligence and ongoing geopolitical tensions.

India is positioning itself as a potential manufacturing partner for companies seeking to diversify their semiconductor supply chains beyond Taiwan and China. Prime Minister Narendra Modi said the country was preparing to provide new and reliable manufacturing locations.

According to government estimates, India's semiconductor consumption could reach $110 billion by 2030, compared with an estimated $45 billion to $50 billion in 2025.

Applied Materials said its planned investment in India will focus on research, expanding supply-chain capabilities and developing the workforce. India has committed more than $21 billion through two major semiconductor incentive programmes.

Twelve semiconductor projects have been approved under the country's incentive programme over the past five years. Three chip-packaging facilities, including a plant operated by Micron Technology, have already started commercial production.

However, India has not yet produced a chip from a large-scale fabrication facility. Commercial production at Tata Electronics' $10 billion semiconductor fabrication project in Gujarat has been delayed by nearly two years.