Applied Materials invests $5 billion in India

• Applied Materials (NASDAQ:AMAT) plans to invest $5 billion in India over the next decade to expand its semiconductor operations.
• The investment will focus on research, supply chain expansion, and workforce development.
• The move comes as India expands its semiconductor industry amid rising demand for AI-related chip capacity.

Applied Materials (NASDAQ:AMAT) announced plans to invest $5 billion in India over the next decade as the semiconductor equipment maker expands its presence in the country.

The investment comes as India increases efforts to develop its semiconductor ecosystem, with government estimates projecting domestic chip consumption could reach $110 billion by 2030 from $45 billion to $50 billion in 2025.

“We are committed to supporting the growth of India’s semiconductor ecosystem through investments in research, supply chain capabilities and workforce development,” said Applied Materials in its announcement.

Applied Materials said the investment will focus on research activities, supply chain scale-up and workforce growth, while India has committed more than $21 billion across two semiconductor incentive programs to attract chip-related investments.

Applied Materials supplies semiconductor manufacturing equipment used by chipmakers worldwide, while India’s semiconductor strategy aims to build capabilities across chip design, materials, fabrication and packaging.

India has approved 12 semiconductor projects through its incentive programs over the past five years, with three chip-packaging plants already beginning commercial production, although the country has not yet produced chips from a large-scale fabrication plant.