US semiconductor equipment maker Applied Materials plans to invest $5 billion in India over the next decade as it expands research, supply-chain and workforce activities in a country seeking a larger role in global chip manufacturing.
The commitment was announced during SEMICON India 2026 in New Delhi, where more than 600 companies from 52 countries gathered as India promotes the next phase of its semiconductor program. Reuters reported that the investment will broaden Applied Materials’ existing presence rather than center on a new chip fabrication plant.
Research and suppliers form the core of the plan
Applied Materials said the program includes a 140-acre research park intended to expand semiconductor research and development capabilities and introduce new technologies. The company also plans to expand its India-based supply chain tenfold and attract more global suppliers to establish operations in the country.
The company already has substantial engineering operations in Bengaluru. Its India workforce has grown fourfold over the past decade to more than 7,000 employees, according to company figures reported at the conference.
The new commitment follows Applied Materials’ recent expansion elsewhere in Asia. In June, TNGlobal reported that the company opened an expanded manufacturing and R&D campus in Singapore backed by a $500 million investment.
India pushes beyond chip assembly
India has committed more than $21 billion to semiconductor incentives as it tries to build capabilities spanning design, fabrication, packaging, materials and equipment. Twelve projects have been approved under the country’s first semiconductor incentive program, while several packaging facilities have begun commercial production.
The country has yet to begin large-scale commercial wafer production from a major fabrication facility. Tata Electronics’ planned fab in Gujarat is among the projects intended to change that, alongside investments in assembly, testing and semiconductor materials.
India is also expanding support for semiconductor design. Government programs have backed chip-design projects and provided electronic design automation tools to startups and small and medium-sized enterprises.
AI demand adds urgency to chip investment
The investment comes as artificial intelligence infrastructure drives demand for advanced semiconductors and the equipment used to manufacture them. At the same time, technology restrictions and geopolitical tensions have encouraged chip companies and their suppliers to diversify manufacturing and research footprints.
Applied Materials does not manufacture finished processors. Its equipment is used across critical semiconductor production steps, making equipment suppliers an important part of efforts to build domestic chip ecosystems.
The company has not provided a year-by-year breakdown of the $5 billion commitment. Execution will therefore depend on how quickly the planned research park, supplier expansion and workforce investments move from announced spending to operating capacity.
Applied Materials expands Singapore manufacturing with $500M investment to support AI chip demand