Applied Materials Commits $5 Bn To Boost India’s Semiconductor Ecosystem
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US-based semiconductor equipment and materials-engineering company Applied Materials has announced a $5 Bn (₹47,980.8 Cr) investment commitment as part of its Applied Materials India Vision 2035.
Prabhu Raja, president of the semiconductor products group at Applied Materials, made the commitment while addressing the SEMICON India 2026 at Yashobhoomi, New Delhi, today.
This investment will be used over the next decade to accelerate and integrate India’s semiconductor ecosystem into the global value chain, with a three pillar approach — to deepen its research and development (R&D) in India, to accelerate the semiconductor ecosystem in India and to foster talent in India.
“Today, we are committing to a new 140-acre advanced semiconductor research park, bringing together cleanroom capabilities, engineering expertise, and collaborative R&D with customers and suppliers on one side. Second, accelerate the ecosystem in India. Inventions done here must scale globally,” Raja said.
He further added that the company aims to grow its India-based supply chain capacity 10X by 2035, creating opportunities for Indian suppliers and bringing global suppliers here.
Industry Expansion Targets Under Semicon 2.0
Meanwhile, Prime Minister Narendra Modi highlighted commercial production launches of two new semiconductor plants at Mohali and Surat today at the SEMICON India conference.
In late August, the Union Cabinet approved the second phase of the Indian Semiconductor Mission, Semicon 2.0, with an outlay of ₹1.28 Lakh Cr, which will focus on six areas — chip design; semiconductor equipment and materials; fabrication plants (fabs); assembly, testing, marking and packaging (ATMP)/ outsourced semiconductor assembly and test (OSAT) units; research and development; and talent development.
Setting targets for the second phase, Modi said that the government expects least 200 chip-design startups and companies to participate in India, up from 105 that participated in the first phase, and 1 Lakh factory-floor and clean-room workers to be trained, alongside the existing chip-design talent goal with new 3D packaging unit coming up in Odisha.
Semicon 2.0 is eyeing to attract more chipmakers to set up facilities in India, including silicon fabs, compound semiconductor fabs, discrete component fabs and display fabs.
The government has received investment commitments of over ₹1 Lakh Cr ($11-12 Bn) since launch of Semicon 2.0 and has created 1 Lakh jobs, union minister Ashwini Vaishnaw said.
PM also called for building a stronger domestic semiconductor supply chain by backing fabless chip companies, developing homegrown intellectual property and integrating silicon photonics into AI infrastructure. He urged players across semiconductor equipment, chemicals, gases and materials to tap the opportunities created by the 12 approved projects and the country’s growing chip demand.
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