2 hrs ago
Applied Materials Announces $5 Billion India Semiconductor Research Investment Plan
Applied Materials is a company that makes equipment used to build computer chips.
It plans to invest $5 billion in India over the next 10 years.
The company wants to build a special research laboratory and clean room there.
It also wants more suppliers to make parts closer to its Indian operations.
This could help the company develop products faster.
Applied Materials plans to hire and train more engineers in India.
The company said chip products can take up to 10 years to develop.
It expects growing demand for chips, especially as artificial intelligence systems expand.
Applied Materials plans to invest $5 billion in India over 10 years.
The investment will fund a semiconductor research laboratory and clean room.
The company aims to build a local supply chain for globally developed products.
Applied Materials plans to expand chip design and product development in India.
The company said closer suppliers could reduce development delays and support hiring and training engineers.
- Who
- Applied Materials, a United States semiconductor equipment maker, led by comments from India executive Prabu Raja.
- What
- The company announced a $5 billion, 10-year investment plan for semiconductor research, product development, and a local supply chain in India.
- Where
- India; the company already has an engineering hub in Bengaluru, while the new laboratory’s specific location was not stated.
- When
- The investment was announced at Semicon India 2026; Raja discussed it with Mint on Thursday.
- Why
- To develop products and engineering expertise in India, bring suppliers closer to product-development operations, and reduce development delays.
Key facts
- Investment
- $5 billion over 10 years
- Main facilities
- A semiconductor research and development laboratory and clean room
- Supply-chain goal
- Develop local suppliers for parts used in products built globally
- Existing India investment
- Applied Materials announced a $400 million Bengaluru engineering hub investment in June 2023
- India revenue
- ₹2,708 crore in FY25, up 12% according to company filings cited by Mint
- Product-development cycle
- Semiconductor product development can take as long as 10 years
- Market context
- The global semiconductor industry has crossed $1 trillion, while the equipment market is expected to exceed $150 billion this year
Quotes
Prabu Raja
President of Applied Materials’ semiconductor products group
“We’ll use the $5 billion investment to build a lab here, a clean room, where we develop products in India. This means that we’ll also need to develop a lot of engineering expertise, for which we will be hiring a lot of people for semiconductor product development.”
livemint.com
“If the supply chain and us work in one place together, we reduce the number of iterations and increase the product development pace.”
livemint.com
Sources
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