Applied Materials Plans $5 Billion India Investment as Semiconductor Push Accelerates

NEW DELHI — U.S. semiconductor equipment giant Applied Materials has announced plans to invest $5 billion in India over the next decade, strengthening the country’s ambitions to become a significant player in the global chip industry.

The investment, announced at SEMICON India 2026 in New Delhi, will focus on research, expanding local supply chains and developing the semiconductor workforce, according to Reuters. Applied Materials is one of the world’s leading suppliers of equipment used in semiconductor manufacturing.

The announcement comes as India seeks to attract global semiconductor companies amid rising demand for chips driven by artificial intelligence and efforts by manufacturers to diversify production geographically. India estimates that domestic semiconductor consumption could reach $110 billion by 2030, compared with roughly $45–50 billion in 2025.

SEMICON India 2026, held from September 17–19 at Yashobhoomi, attracted more than 600 exhibitors and representatives from 52 countries, according to the Press Information Bureau. The event recorded around 40,000 visitors and included 56 agreements, announcements and strategic initiatives.

India has approved 12 semiconductor projects under its incentive programme, although large-scale domestic wafer fabrication remains at an early stage.