Semiconductor equipment maker Applied Materials is set to invest $5 billion in India over the next decade, expanding its semiconductor R&D, supply-chain, and talent footprint in the country.
The company plans to build a 140-acre advanced semiconductor research park in Bengaluru, expand its R&D workforce, and scale its India-based supply chain tenfold by 2035, attracting greater participation from semiconductor manufacturers and related industries.
The company currently employs more than 7,000 people in the country and plans to more than double its R&D workforce as part of its India Vision 2035 programme to build a stronger semiconductor ecosystem in the country.
“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, said in a statement.
The 140-acre advanced semiconductor research park in Bengaluru is expected to include cleanrooms and engineering infrastructure where Applied Materials can work with semiconductor customers and suppliers to develop and test technologies used in chip manufacturing.
Applied Materials supplies the equipment and technologies chipmakers use to manufacture semiconductors, rather than producing chips itself. The investment therefore targets an important supporting layer of India’s semiconductor ecosystem, covering equipment engineering, R&D, and supplier capabilities.
The company plans to expand beyond Bengaluru, adding operations in Chennai and Mumbai, and proposing a customer-support centre in Gujarat. Applied Materials’ goal is to increase its India-based supply-chain capacity tenfold by 2035, creating opportunities for domestic suppliers and encouraging global semiconductor equipment suppliers to build a presence in India.
The expansion comes as India seeks to develop a more complete semiconductor ecosystem, from chip design and manufacturing to packaging, testing, and supporting supply chains. With demand for advanced chips rising alongside AI and data-centre infrastructure, the company’s planned expansion could further integrate Indian engineering and suppliers into the global semiconductor manufacturing network.
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