Applied Materials Commits $5 Bn To Boost India’s Semiconductor Ecosystem

Applied Materials has pledged a substantial $5 billion investment, amounting to ₹47,980.8 crore, as part of its Applied Materials India Vision 2035. This commitment was unveiled by Prabhu Raja, the president of the semiconductor products group at Applied Materials, during a speech at the SEMICON India 2026 conference held at Yashobhoomi, New Delhi. The investment will be spread over the next ten years, aiming to bolster and integrate India's semiconductor ecosystem into the global value chain.

Raja's vision encompasses a three-pronged approach. First, the company plans to deepen its research and development efforts in India. Second, it aims to fast-track the development of the semiconductor ecosystem in India, with a goal of scaling global inventions originating from local research. Lastly, Applied Materials intends to nurture talent within the country, fostering a skilled workforce that will drive the industry forward.

As part of the company's commitment, Applied Materials is set to develop a new 140-acre advanced semiconductor research park. This park will integrate cleanroom facilities, engineering expertise, and collaborative research and development initiatives with both local and international partners. Additionally, the company aims to increase its India-based supply chain capacity tenfold by 2035, creating lucrative opportunities for Indian suppliers and attracting global manufacturers to establish operations within the country.

Meanwhile, Prime Minister Narendra Modi addressed the SEMICON India conference, announcing the commercial production launches of two new semiconductor plants in Mohali and Surat. These additions come as part of the government's Semiconductor Mission Semicon 2.0, which has allocated ₹1.28 lakh crore for the second phase of the initiative.

The mission aims to achieve several goals, including attracting at least 200 chip-design startups and companies, training 1 lakh factory-floor and clean-room workers, and developing a new 3D packaging unit in Odisha.

Modi's vision for Semicon 2.0 extends to encouraging the establishment of various types of semiconductor facilities across India, including silicon fabs, compound semiconductor fabs, discrete component fabs, and display fabs. The government has already received over ₹1 lakh crore in investment commitments since the mission's launch and has successfully created 1 lakh jobs.

The minister further emphasized the importance of strengthening India's domestic semiconductor supply chain by supporting fabless chip companies, developing homegrown intellectual property, and integrating silicon photonics into AI infrastructure.

In conclusion, both Applied Materials and the Indian government are taking significant steps to bolster the country's semiconductor ecosystem. Applied Materials' $5 billion investment demonstrates the company's dedication to nurturing local talent and fostering innovation in India's semiconductor industry. Meanwhile, the government's Semiconductor Mission Semicon 2.0 is poised to create a robust foundation for the growth of semiconductor manufacturing, research, and employment in the nation.