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Applied Materials Invests $5B in India's Chip Future
17 Sep
Summary
- US company to invest $5 billion over 10 years.
- India's chip consumption to reach $110 billion by 2030.
- India offers incentives for semiconductor industry growth.
US-based Applied Materials plans to invest $5 billion in India over the next ten years, bolstering its presence in the nation's rapidly expanding semiconductor sector. The investment will concentrate on research initiatives, scaling up supply chains, and fostering workforce development.
This move occurs as India showcases its semiconductor ambitions at the SEMICON India conference in New Delhi. The country aims to become a significant player in chip production, driven by a global demand surge for semiconductors, particularly for AI applications, and geopolitical shifts influencing supply chains. India has positioned itself as a reliable manufacturing hub, distinct from current hotspots.
Government estimates project India's semiconductor consumption to climb to $110 billion by 2030, a substantial increase from current figures. To support this growth, India has allocated over $21 billion through incentive programs. Despite being a late entrant, India has already approved twelve projects and seen three chip-packaging plants commence production, though large-scale fabrication is still developing.
