APPLIED MATERIALS TO INVEST $5 BILLION IN INDIA AS GLOBAL CHIPMAKERS EXPAND THEIR FOOTPRINT

US semiconductor-equipment company Applied Materials has announced plans to invest approximately $5 billion in India over the next decade, providing a major vote of confidence in the country’s attempt to build a complete semiconductor ecosystem. The announcement came during SEMICON India 2026, where more than 600 companies from 52 countries gathered as India positioned itself as an alternative manufacturing and technology destination amid global efforts to diversify semiconductor supply chains. Applied Materials plans to expand research, supply-chain development and workforce capabilities in India. The investment is strategically important because semiconductor manufacturing requires a wide network of equipment suppliers, materials companies, research institutions and skilled engineers, meaning investment from equipment manufacturers can help establish the ecosystem required by chip fabs and packaging facilities. India has committed more than $21 billion through semiconductor incentives and is targeting semiconductor consumption of approximately $110 billion by 2030. The country has already approved multiple semiconductor projects, although large-scale fabrication remains a major challenge. The semiconductor industry is also increasingly linked to artificial intelligence because AI data centres require enormous quantities of advanced processors and memory. Global chipmakers are therefore looking to expand production capacity while reducing dependence on a small number of manufacturing locations. India’s large engineering workforce, expanding electronics market and government incentives are contributing to its attractiveness. For Odisha, the development is particularly relevant because the state is attempting to establish itself as a semiconductor hub through projects in Bhubaneswar, Cuttack and Naraj. Applied Materials’ investment reinforces the broader national ecosystem in which Odisha is trying to participate.