Key Moments
- Applied Materials plans to invest $5 billion in India over the next decade, focusing on research, supply chain expansion, and workforce development.
- India has approved 12 projects and seen three chip-packaging plants start commercial production under its semiconductor incentive program.
- Commercial output from the $10 billion Tata Electronics fabrication plant in Gujarat has been delayed by nearly two years.
Applied Materials Unveils Long-Term India Investment Plan
Applied Materials announced it will deploy $5 billion in India over the coming ten years to deepen its footprint in the country. The US-based semiconductor equipment manufacturer detailed the commitment on Thursday during SEMICON India, the nation’s flagship chip industry conference.
The company stated that the capital will be directed toward research activities, scaling up its supply chain capabilities, and expanding its talent base in India.
SEMICON India Showcases New Delhi’s Chip Ambitions
The investment disclosure came as India highlighted its semiconductor ambitions at SEMICON India, a three-day gathering in New Delhi. The event covers the entire chip value chain, including materials, design, fabrication, and packaging, and has attracted more than 600 companies and delegates from 52 countries.
The conference is taking place against a backdrop of intense global competition for semiconductor manufacturing capacity. Industry dynamics have been shaped by accelerating demand for computing power to support AI and by geopolitical frictions affecting technology trade.
India Positions Itself as a “Trusted Partner”
With Washington and Beijing engaged in reciprocal export controls on chip-related technologies, India has been working to position itself as a neutral and dependable alternative for companies reassessing their exposure to Taiwan and China.
Prime Minister Narendra Modi underscored this positioning, saying: “The world stands in utmost need of new and reliable manufacturing locations. I say with great responsibility that India is continuously preparing itself for this.”
Growing Semiconductor Demand and Policy Support
Government projections indicate that India’s semiconductor consumption could rise to as much as $110 billion by 2030, compared with an estimated $45 billion to $50 billion in 2025.
To support this growth and attract global players, India has committed more than $21 billion through two major semiconductor incentive schemes. Despite this push, the country is still a latecomer to a capital-intensive sector that other jurisdictions, such as Taiwan, have spent decades developing.
| Metric | Value |
|---|---|
| Applied Materials planned investment in India | $5 billion over the next decade |
| India semiconductor incentive commitment | More than $21 billion |
| Projected semiconductor consumption in 2025 | $45 billion to $50 billion |
| Projected semiconductor consumption by 2030 | As much as $110 billion |
| Number of companies at SEMICON India | More than 600 |
| Countries represented at SEMICON India | 52 |
Incentive Program Outcomes and Manufacturing Gaps
Over the past five years, twelve projects have secured approval under India’s semiconductor incentive framework. Within that group, three chip-packaging facilities have moved into commercial production, including one operated by US-based Micron Technology.
However, India’s broader strategy has not yet yielded chips from a large-scale fabrication facility. The flagship effort – a $10 billion fab being developed by Tata Electronics in the western state of Gujarat – has encountered delays. Commercial production at that site has been pushed back by nearly two years.
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