APPLIED MATERIALS PLANS $5 BILLION INDIA INVESTMENT AS SEMICONDUCTOR ECOSYSTEM EXPANDS

US semiconductor-equipment company Applied Materials plans to invest approximately $5 billion in India over the next decade, strengthening the country’s ambition to build a deeper semiconductor manufacturing ecosystem. The investment is important because semiconductor manufacturing depends not only on chip fabs but also on sophisticated equipment, research, materials and highly trained engineers. Applied Materials is one of the world’s major semiconductor-equipment companies, making its commitment a significant signal to the global industry that India is becoming a more relevant location for semiconductor-related investment. The announcement comes as India is attempting to reduce dependence on concentrated global chip supply chains and build domestic capabilities across manufacturing, packaging, materials and design. India has committed billions of dollars in incentives to attract semiconductor companies, while states including Gujarat, Assam and Odisha are competing to develop specialised clusters. For Odisha, Applied Materials’ investment strengthens the wider national ecosystem within which the state’s emerging semiconductor projects will operate. The growth of AI and data centres is also increasing global demand for advanced semiconductors, creating pressure for additional manufacturing capacity. India’s large engineering workforce and rapidly expanding electronics market provide a potential competitive advantage, but the country will need reliable infrastructure, skilled manpower and strong supplier networks to convert investment commitments into globally competitive production.