Applied Materials has announced plans to invest US$5 billion in India over the next decade, making the semiconductor-equipment company’s latest India commitment a major development for the country’s growing chip ecosystem.
The announcement came at SEMICON India 2026 in New Delhi, as India pushes to build capabilities across semiconductor design, equipment, manufacturing, packaging, supply chains and talent.
What Applied Materials Announced
Applied Materials said its India Vision 2035 will focus on three broad areas: expanding research and development in India, accelerating the local semiconductor ecosystem and developing future talent.
The investment will be spread over the next decade and is intended to integrate more of India’s semiconductor capabilities into the global value chain.
A New Semiconductor Research Park
One of the most significant parts of the plan is a proposed 140-acre advanced semiconductor research park. The company says the facility will bring together cleanroom capabilities, engineering expertise and collaborative R&D involving customers and suppliers.
Applied Materials has already built a semiconductor engineering presence in India. The new investment is intended to expand that capability and support product development from India.
India Supply Chain Could Grow 10 Times
Applied Materials also plans to expand its India-based supply-chain capacity by 10 times by 2035. The goal is to create more opportunities for Indian suppliers while bringing additional global suppliers into the country.
A stronger local supply chain can reduce dependence on long international procurement cycles and help semiconductor companies develop and scale products closer to their engineering operations.
Why AI Is Driving Semiconductor Demand
The investment comes as demand for computing infrastructure continues to rise because of artificial intelligence. AI data centres require large amounts of advanced computing, memory, networking and power-management hardware, increasing demand across the semiconductor value chain.
Applied Materials is one of the world’s major semiconductor equipment companies, so its expansion in India is closely connected to the wider growth of chip manufacturing and advanced technology infrastructure.
What It Means for India’s Technology Industry
For India, the announcement adds another major global technology company to the country’s semiconductor-development story. The impact is not limited to chip fabrication: semiconductor equipment, engineering, materials, supplier networks, R&D and skilled talent are all important parts of the ecosystem.
- More semiconductor R&D activity in India
- Potential growth in engineering and specialist technology jobs
- More opportunities for Indian semiconductor suppliers
- Greater integration with global chip supply chains
- Additional momentum for India’s semiconductor ambitions
SEMICON India 2026 and the Bigger Picture
SEMICON India 2026 is being held in New Delhi from September 17 to 19 under the theme “Silicon to Systems: Building the Ecosystem.” The event brings together companies, policymakers, researchers, investors and academic institutions from across the semiconductor and electronics industry.
The Government of India says 12 semiconductor projects have been approved under the earlier phase of the semiconductor programme, while the next phase, Semicon 2.0, is intended to accelerate ecosystem development.
India’s Growing Semiconductor Opportunity
Reuters reported that Indian government estimates put semiconductor consumption at up to $110 billion by 2030, compared with around $45–50 billion in 2025. India has also committed more than $21 billion across two key semiconductor incentive programmes.
At the same time, the industry remains capital-intensive and complex. India is building capabilities across packaging and other parts of the ecosystem, while large-scale fabrication projects continue to develop.
Key Takeaways
- Applied Materials plans to invest $5 billion in India over the next decade.
- The investment is part of the company’s India Vision 2035.
- Plans include a proposed 140-acre advanced semiconductor research park.
- Applied Materials aims to increase its India-based supply-chain capacity 10 times by 2035.
- The company is also focusing on R&D and future semiconductor talent in India.
- The announcement comes as AI-driven computing demand increases pressure for more semiconductor capacity.
Sources
- Reuters — Applied Materials to invest $5 billion in India
- The Economic Times — Applied Materials India Vision 2035
- Press Information Bureau — SEMICON India 2026
- The Indian Express — SEMICON India 2026 explained
