Applied Materials plans to invest $5 billion in India over the next decade, deepening the semiconductor-equipment maker’s presence as New Delhi accelerates efforts to build a domestic chip ecosystem.
The company announced the commitment during India’s flagship semiconductor event, with Reuters reporting that the spending will support engineering, manufacturing and supplier development. Applied Materials already operates a large research and development footprint in the country.
India pushes further into the chip supply chain
India has used subsidies and policy incentives to attract semiconductor fabrication, packaging and equipment projects. The goal is to reduce dependence on imports while creating a broader electronics manufacturing base.
Applied Materials does not manufacture finished chips. Its equipment is used by semiconductor makers to deposit, modify and inspect the materials that become advanced processors and memory devices, making the company an important upstream supplier.
The investment will unfold over years, so its impact will depend on project execution, local supplier development and the pace at which new chip plants are built in India. Even so, the size of the commitment signals that global equipment companies increasingly view India as more than a design and software hub.
