Newsletter
US-based chip equipment maker Applied Materials will invest $5 billion in India over the next decade, as the country expands its semiconductor ambitions beyond just manufacturing chips.
What’s brewing: the company will build a new 140-acre research and development park in India to strengthen its R&D capabilities and develop new semiconductor technologies in the country.
That’s not all. Applied Materials also plans to expand its India-based supply chain tenfold and bring more of its global suppliers to the country.
Why now: the investment comes as the government expands its semiconductor push through India Semiconductor Mission 2.0, which aims to develop the entire semiconductor value chain, including chip design, chemicals, materials, gases and talent, rather than focusing only on fabrication plants.
Under the first phase of the semiconductor programme, the government approved 12 projects with a cumulative investment of around ₹1.64 lakh crore, spanning silicon and compound semiconductor fabs, display fabrication and advanced packaging.
But manufacturing chips is only one part of the equation. Designing them and developing the technology and equipment needed to make them are equally important. Applied Materials’ investment could help address this gap as India tries to build more of the semiconductor ecosystem at home.
Big picture: India’s semiconductor ambitions are getting bigger. Large-scale investments, expanding manufacturing capacity and initiatives such as SEMICON India are helping build momentum around the country’s domestic chip ecosystem.
India’s semiconductor market was estimated at around $38 billion in 2023 and $45-50 billion in 2024-25, and is expected to reach $100-110 billion by 2030.
By 2029, India is expected to have the capability to design and manufacture chips required for nearly 70-75% of domestic applications.
