Applied Materials announced on Thursday that it plans to invest $5 billion in India over the next ten years to enhance its operations in the country. This announcement was made during SEMICON India, a major semiconductor conference taking place in New Delhi.
The three-day event has highlighted India’s aspirations in the semiconductor sector, showcasing a range of topics including chip materials, design, fabrication, and packaging. The conference has attracted over 600 companies and representatives from 52 different nations.
This year has witnessed intense competition in the global semiconductor market, driven by an increased demand for chips, particularly in artificial intelligence, and further complicated by geopolitical tensions. As Washington and Beijing engage in reciprocal export restrictions on chip technologies, India has positioned itself as a “trusted partner,” appealing to firms seeking alternatives to Taiwan and China.
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Prime Minister Narendra Modi remarked, “The world is in dire need of new and dependable manufacturing sites. I can confidently say that India is consistently preparing itself for this challenge.”
According to government projections, India’s semiconductor consumption is expected to soar to approximately $110 billion by 2030, up from an estimated $45 billion to $50 billion by 2025.
Applied Materials, recognized as one of the leading semiconductor equipment manufacturers globally, indicated that its investment in India will focus on research, scaling the supply chain, and workforce development.
India has pledged over $21 billion through two significant incentive programs aimed at boosting its semiconductor industry. However, it remains a newcomer to this capital-intensive sector, which has taken countries like Taiwan decades to establish.
In the last five years, twelve projects have received approval under India’s incentive initiatives, and three chip-packaging factories, including one operated by Micron Technology, have commenced commercial production.
Despite these efforts, India has yet to produce a chip from any large-scale fabrication facility. The launch of commercial production at a notable $10 billion Tata Electronics fabrication plant in Gujarat has been postponed by nearly two years.
