Applied Materials (AMAT.US) is betting $5 billion on India! Increase R&D, supply chain and semiconductor talent layout in the next ten years

The Zhitong Finance App learned that the US semiconductor equipment manufacturer Applied Materials (AMAT.US) said at India's flagship chip conference SEMICON India on Thursday that it will invest 5 billion US dollars in India over the next ten years to expand its business layout in India.

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

Since this year, the global battle for chip production capacity has intensified, and the surge in demand for artificial intelligence computing has further heightened tension and is intertwined with geopolitical conflicts.

At a time when China and the US are imposing tit-for-tat export restrictions on chip technology, India is positioning itself as a “trustworthy partner” to attract companies seeking to spread risk.

Indian Prime Minister Narendra Modi said, “The world is in dire need of new, reliable manufacturing sites. I say responsibly, India is continuing to prepare for this.”

The Indian government estimates that the country's semiconductor consumption is expected to reach 110 billion US dollars by 2030, up from 45 billion to 50 billion US dollars 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 pledged more than $21 billion in two key semiconductor incentive programs, but it is still a latecomer in this capital-intensive industry. Taiwan and other regions have been deeply involved in this field for decades.

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

However, India's semiconductor propulsion program has yet to produce any chips from a large fab. Commercial production of its flagship project — the $10 billion Tata Electronics Fab in western Gujarat — has been delayed for almost two years.