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Applied Materials to Invest $5 Billion in India’s Semiconductor Ecosystem

Applied Materials will invest $5 billion in India over the next decade to expand semiconductor R&D, supply-chain capacity, and talent development. The plan includes a 140-acre research park in Bengaluru, doubling its R&D workforce, scaling the India-based supply chain tenfold by 2035, and expanding operations to Chennai, Mumbai, and Gujarat. The company currently employs over 7,000 people in India and ordered India’s first 300-millimetre lab in 2024.

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Applied Materials to Invest $5 Billion in India’s Semiconductor Ecosystem

According to analyticsindiamag.com, Applied Materials plans to invest $5 billion in India over the next decade to expand semiconductor research and development, supply-chain capacity, and local talent development.

Research Park and Workforce Expansion

The company will build a 140-acre advanced semiconductor research park in Bengaluru, featuring cleanrooms and engineering infrastructure for collaborative technology development with customers and suppliers. Applied Materials currently employs more than 7,000 people in India and aims to more than double its R&D workforce under its India Vision 2035 programme.

Prabhu Raja, President of the Semiconductor Products Group at Applied Materials, stated:

“Deepening our R&D in India, Applied was among the first to establish a semiconductor engineering capability centre. In 2024, we ordered India’s first 300-millimetre lab.” — Prabhu Raja, President of the Semiconductor Products Group at Applied Materials

The research park will serve as a hub for co-development and testing of chip manufacturing technologies — reinforcing Applied Materials’ role as an equipment and technology supplier rather than a chipmaker.

Supply Chain Scaling and Geographic Expansion

Applied Materials intends to scale its India-based supply chain capacity tenfold by 2035. To support this growth, the company plans to expand operations beyond Bengaluru into Chennai and Mumbai, and propose a customer-support centre in Gujarat.

This expansion aligns with India’s national objective to develop a complete semiconductor ecosystem — spanning design, manufacturing, packaging, testing, and supporting supply chains. The investment targets critical enabling layers: equipment engineering, R&D infrastructure, and domestic supplier capabilities.

The timing coincides with rising global demand for advanced semiconductors driven by AI and data-centre infrastructure growth — positioning Indian engineering and suppliers for deeper integration into the global semiconductor manufacturing network.

Source: analyticsindiamag.com

Compiled from international media by the SCI.AI editorial team.

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