Applied Materials has announced a $5 billion investment in India over the next decade, including plans for a new research park, local supply chain growth, and increased engineering capacity, underscoring India’s rising prominence in the global chip industry.
Applied Materials will invest $5 billion in India over the next decade, in a move that underlines how central the country has become to the global chip industry’s long-term plans. Announcing the commitment at SEMICON India 2026 in New Delhi, Prabu Raja said the company intends to expand its semiconductor research and development footprint, deepen its local supply chain and sharply increase its engineering capacity by 2035.
The plan includes a 140-acre advanced semiconductor research park, according to the company’s announcement, alongside a target to grow India-based supply-chain capacity tenfold and double its research workforce over the next decade. The scale of the pledge also appears to build on an earlier agreement in Karnataka, where Applied Materials committed about ₹3,600 crore, or roughly $500 million, for a research and development facility at the Bengaluru Signature Business Park.
That broader push comes as Applied Materials steps up its engagement with India’s deep-tech ecosystem. LiveMint reported that the company’s venture arm, Applied Ventures, has been actively screening Indian startups, while Applied Materials has also joined the India Deep Tech Alliance alongside companies including CG Power, Lam Research, Larsen & Toubro and Micron Technology. The alliance is designed to channel capital, technical expertise and policy support towards Indian startups in fields ranging from semiconductors to artificial intelligence.
The investment lands at a time when chipmakers are racing to secure production capacity and engineering talent across key geographies. Applied Materials is also pushing into what it calls the “angstrom era” of chipmaking with new systems aimed at finer-scale manufacturing, while Intel has separately announced a multi-billion-euro expansion in Ireland. Together, the moves suggest that global semiconductor groups are not just spending more, but also widening their geographic footprint to strengthen supply chains and stay close to emerging centres of innovation.
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