Applied Materials Plans $5 Billion India Investment Over Next Decade
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Khushi Jain
- September 18, 2026
US semiconductor equipment maker Applied Materials has announced plans to invest $5 billion in India over the next decade as it seeks to expand its research, supply chain and talent base in the country.
The investment, announced under its “Applied Materials India Vision 2035”, is aimed at accelerating India’s semiconductor ecosystem and integrating it more closely with the global semiconductor value chain. Applied Materials announced the plan at SEMICON India 2026 in New Delhi on Thursday.
Prabu Raja, president of Applied Materials’ Semiconductor Products Group, said the strategy will focus on three main areas: deepening research and development (R&D) in India, accelerating the country’s semiconductor ecosystem and developing future talent.
“Today we are announcing Applied Materials India Vision 2035 – A US$5 billion investment for the next decade to accelerate and integrate India’s semiconductor ecosystem into the global value chain… It has a three-pillar approach: one, deepen our R&D in India; two, accelerate the ecosystem in India; three, grow future talent in India,” Raja said.
New 140-Acre Research Park
A central part of the investment plan is a proposed 140-acre advanced semiconductor research park in Bengaluru.
The facility is intended to bring together cleanroom capabilities, engineering expertise and collaborative R&D involving Applied Materials, its customers and suppliers. It will form part of the company’s effort to expand India’s role from semiconductor equipment design towards a broader part of the product development cycle.
“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,” Raja said.
Applied Materials has operated in India for more than two decades. Its operations in the country cover R&D, product and software engineering, design, validation and product lifecycle development, according to the company.
The company has already developed semiconductor research infrastructure in Bengaluru. In March 2024, it commissioned its India Validation Center, where it demonstrated the capability to process 300mm wafers, which Applied Materials said was a first for private industry in India. The company now describes the centre as India’s first and only 300mm semiconductor R&D facility.
Applied Materials makes equipment and materials-engineering systems used in semiconductor production rather than manufacturing chips itself. Its equipment is used in processes involved in producing semiconductors and advanced displays.
India Supply Chain Capacity to Grow Tenfold
The second part of Applied Materials’ strategy focuses on expanding India’s semiconductor supply chain and helping technologies developed in the country reach global markets.
The company aims to increase its India-based supply chain capacity tenfold by 2035, creating opportunities for domestic suppliers while encouraging global suppliers to expand their presence in the country.
“Second, accelerate the ecosystem in India. Inventions done here must scale globally. By 2035, we aim to grow our India-based supply chain capacity 10 times, creating opportunities for Indian suppliers and bringing global suppliers here,” Raja said.
The company also intends to expand its R&D workforce as part of the investment programme. Applied Materials plans to more than double its R&D headcount in India by 2035, according to reporting on the announcement.
The investment comes at a time when semiconductor companies and governments are trying to diversify global supply chains, while demand for advanced chips is being supported by the rapid growth of AI and other computing technologies.
India Expands Semiconductor Programme
Applied Materials’ announcement comes as the Indian government begins the second phase of its semiconductor programme.
The Union Cabinet approved Semicon 2.0 on 15 July 2026 with an outlay of Rs 1,27,500 crore. The programme is organised around six areas: chip design, semiconductor machines and materials, fabrication plants, advanced packaging through ATMP and OSAT facilities, research and development, and talent development.
The programme builds on Semicon 1.0, under which the government has approved 12 semiconductor manufacturing projects. According to the government’s latest update, the projects represent cumulative investment of more than Rs 1.64 lakh crore, while five semiconductor units have begun commercial production.
Speaking at SEMICON India 2026, Prime Minister Narendra Modi said India was seeking to strengthen its semiconductor ecosystem across research, manufacturing and the supply chain. He urged the industry to expand R&D in the country and said India was positioning itself as a destination for global semiconductor manufacturing and investment.
Applied Materials’ $5 billion plan places research, supplier development and talent at the centre of its expansion in India as the country seeks a larger role across the global semiconductor value chain.
FAQs
1. How much does Applied Materials plan to invest in India?
Applied Materials plans to invest $5 billion in India over the next decade.
2. What is Applied Materials India Vision 2035?
It is the company’s investment plan focused on deepening R&D, accelerating India’s semiconductor ecosystem and developing future talent.
3. Where will Applied Materials build its proposed research park?
The company plans to establish a 140-acre advanced semiconductor research park in Bengaluru.
4. What is Applied Materials’ supply chain target for India?
The company aims to increase its India-based supply chain capacity tenfold by 2035.
5. When was Semicon 2.0 approved?
The Union Cabinet approved Semicon 2.0 on 15 July 2026 with an outlay of Rs 1,27,500 crore.
