According to finance.biggo.com, Applied Materials (AMAT), the world’s leading semiconductor equipment maker, announced on May 17 at the SEMICON India conference in New Delhi that it will invest $5 billion in India over the next decade.
Investment Scope and Strategic Base
The investment will focus on expanding R&D capabilities, strengthening supply chain positioning, and cultivating local engineering talent. Bengaluru — India’s southern technology hub — will serve as the company’s primary development base. Applied Materials had previously planned to establish a semiconductor equipment R&D center there, collaborating with universities, research institutions, chip design companies, and equipment component suppliers to shorten the development cycle for new materials and process technologies.
The funds are expected to support joint innovation across academia and industry, with emphasis on accelerating time-to-market for next-generation process technologies. The company noted that India’s deep pool of engineering graduates offers scalable R&D manpower — a key enabler amid tightening global talent constraints. This aligns with its broader strategy to expand R&D capabilities across the U.S., Asia, and India to reinforce leadership in chip manufacturing equipment.
India’s Semiconductor Momentum and Gaps
India’s semiconductor consumption is projected to grow from $45 billion–$50 billion in 2025 to $110 billion by 2030, driven by smartphone penetration, data center expansion, and surging AI computing requirements. To catalyze this growth, the Indian government has committed more than $21 billion across two key semiconductor incentive programs.
Under those programs, 12 projects have been approved over the past five years, and 3 chip packaging facilities have begun commercial production — including one operated by Micron Technology. However, no large-scale wafer fab has yet entered commercial production in India. The flagship Tata Electronics project — a $10 billion wafer fab in Gujarat — has seen commercial production delayed by nearly two years.
Geopolitical Context and Industry Implications
Indian Prime Minister Narendra Modi emphasized at the event:
“The world desperately needs new, reliable manufacturing bases. I can responsibly say that India is continuously preparing for this.” — Narendra Modi, Prime Minister of India
He positioned India as a “trusted partner” amid global supply chain restructuring.
This strategic framing gains urgency amid escalating U.S.-China tech tensions and tit-for-tat export controls on chip technology. As AI computing demand intensifies, semiconductor firms are prioritizing R&D and supply chain diversification. Applied Materials’ move may spur development in India’s precision manufacturing, components, and engineering services sectors — though investors are reminded that near-term equipment procurement remains contingent on wafer fab progress.
Source: finance.biggo.com
Compiled from international media by the SCI.AI editorial team.
