Applied Materials Pledges $5 Billion Investment in India Over Next Decade

Applied Materials, a leading U.S. manufacturer of semiconductor equipment, announced on Thursday a plan to invest $5 billion in India over the next 10 years. The investment is aimed at expanding the country's semiconductor ecosystem beyond manufacturing into research, development, and supply chain management.

Details of the Expansion

According to Prabu Raja, president of Applied Materials’ Semiconductor Products Group, the company will establish a new 140-acre research park in India. This facility will be dedicated to expanding its R&D capabilities and accelerating the introduction of new technologies.

The investment also includes a significant expansion of the company's local supply chain. Applied Materials plans to increase its India-based sourcing tenfold and encourage more of its global suppliers to establish operations in the country. The company noted its Indian workforce has already grown fourfold to more than 7,000 employees over the past decade, with a major presence in Bengaluru focused on equipment design, testing, and R&D.

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Supporting India's Semiconductor Mission

This commitment directly supports the Indian government's "India Semiconductor Mission 2.0," a strategic initiative to develop a comprehensive domestic value chain. The program's goals extend beyond fabrication to include chip design, chemicals, materials, and talent development.

The announcement was made ahead of Prime Minister Narendra Modi's inauguration of the SEMICON India 2026 conference. The government's initial semiconductor program has already approved 12 projects with a total investment of approximately Rs 1.64 lakh crore, according to the source material.