Key facts
- Applied Materials will invest $5 billion in India over the next decade.
- The investment will focus on research, supply chain scale-up, and workforce growth.
- India's semiconductor consumption is projected to reach $110 billion by 2030.
- India has committed over $21 billion to semiconductor incentive programs.
- Three chip-packaging plants in India have begun commercial production.
Applied Materials announced on Thursday it will invest $5 billion in India over the next decade to expand its presence in the country, coinciding with the launch of SEMICON India, the nation's flagship chip conference. The US semiconductor equipment maker's investment will concentrate on research, supply chain expansion, and workforce development.
India is actively promoting its semiconductor industry at the three-day event in New Delhi, which covers chip materials, design, fabrication, and packaging, attracting over 600 companies and representatives from 52 nations. This initiative comes amid a global competition for chip production capacity, driven by AI demand and geopolitical tensions. India positions itself as a reliable manufacturing hub for companies seeking to diversify their supply chains away from Taiwan and China.
Prime Minister Narendra Modi expressed confidence in India's readiness to meet the global demand for new manufacturing locations. India's semiconductor market is expected to grow significantly, from an estimated $45 billion to $50 billion in 2025 to as much as $110 billion by 2030. The country has allocated over $21 billion through two major incentive programs to foster this growth. While India has approved twelve projects and seen three chip-packaging plants commence operations in the last five years, it remains a latecomer to the capital-intensive fabrication sector. The flagship project, a $10 billion Tata Electronics fab, has experienced a nearly two-year delay in its commercial production.