Applied Materials (AMAT.US) makes a bold $5 billion bet on India! Increasing investment in R&D, supply chain, and semiconductor talent layout over the next decade

According to Jinse Finance APP, US semiconductor equipment manufacturer Applied Materials (AMAT.US) stated on Thursday at India's flagship chip conference, SEMICON India, that it will invest $5 billion in India over the next decade to expand its business footprint in the country.

India is holding a three-day event in New Delhi to showcase its semiconductor ambitions in chip materials, design, manufacturing, and packaging. The conference has attracted more than 600 companies and representatives from 52 countries.

Since the start of this year, the global battle for chip manufacturing capacity has intensified, with surging demand for artificial intelligence computing further exacerbating the tension and intersecting with geopolitical conflicts.

As China and the US impose opposing export restrictions on chip technology, India is positioning itself as a "trusted partner" to attract companies seeking to diversify their risk.

Indian Prime Minister Narendra Modi stated: "The world is in great need of new, reliable manufacturing bases. I responsibly assure that India is continuously preparing for this."

The Indian government estimates that the country's semiconductor consumption scale is expected to reach $110 billion by 2030, up from $45 billion to $50 billion in 2025.

Applied Materials is one of the world’s largest semiconductor equipment manufacturers. The company said its investment in India will focus on R&D, supply chain expansion, and workforce growth.

India has already pledged over $21 billion in two key semiconductor incentive programs, but it remains a latecomer in this capital-intensive industry. Regions such as Taiwan have been deeply involved in this field for decades.

In the past five years, 12 projects have been approved under India's incentive programs, and three chip packaging plants have begun commercial production, including a plant operated by US-based Micron Technology (MU.US).

However, India's semiconductor drive has yet to yield any chips from a large-scale wafer fab. Its flagship project—the Tata Electronics wafer fab in Gujarat state in western India, with a $10 billion investment—has seen its commercial production delayed by nearly two years.