American Giants Fuel India’s Chip Manufacturing Revolution
In a major boost to India’s semiconductor ambitions, American chip equipment manufacturer Applied Materials India has announced plans to establish a cutting-edge chip-making center in Bengaluru with the potential to attract over $2 billion in future investments. This development, alongside Lam Research’s commitment to set up two advanced semiconductor facilities in Karnataka, positions the southern state as a pivotal player in India’s growing semiconductor ecosystem.
Applied Materials’ Innovation Center to Transform Bengaluru’s Tech Landscape
Suraj Rengarajan, Managing Director and Head of Semiconductor Products Group at Applied Materials India, revealed that the company is currently investing $400 million over four years to build the Innovation Center for Semiconductor Manufacturing (ICSM). This state-of-the-art facility will span across 10 acres and is expected to create approximately 1,500 high-tech jobs in the region.
“Our plan is to build Innovation Center for Semiconductor Manufacturing in India, designed to catalyse over $2 billion in investments, create high-tech opportunities, and accelerate semiconductor innovation,” Rengarajan stated.
The ICSM will serve as a collaborative platform where Applied Materials’ engineers will work alongside suppliers and academic institutions to accelerate the development and commercialization of technologies for semiconductor manufacturing equipment. This initiative builds upon Applied Materials’ 20-year history in India, where it already operates across six sites with extensive product development, R&D, IT, and operations capabilities.
Lam Research Doubles Down with Dual Facilities in Karnataka
Complementing Applied Materials’ investment, another American chip equipment maker, Lam Research, is establishing two significant units in Karnataka:
An advanced R&D lab with an investment of ₹6,790 crore (approximately $815 million)
A semiconductor silicon component manufacturing facility with an investment of ₹9,111 crore (approximately $1.1 billion)
Together, these facilities are expected to create 1,400 jobs and deliver cutting-edge capabilities in 2nm technology and silicon ingot production. This follows Lam Research’s earlier announcement in February 2025 of a ₹10,000 crore (approximately $1.2 billion) investment in Karnataka’s semiconductor sector.
“To maintain proximity to our customers, Lam Research evaluates opportunities to expand our presence at key locations around the world on an ongoing basis. As previously announced, this includes India, where we have had a significant presence for 25 years, as well as other locations across the United States, Asia, and Europe,” Lam Research stated.
Karnataka’s Semiconductor Ecosystem Gains Momentum
The Karnataka cabinet sub-committee, chaired by Chief Minister Siddaramaiah, recently approved three landmark semiconductor projects representing a cumulative investment of over ₹23,000 crore. In addition to Applied Materials and Lam Research, Delhi-based Bharat Semi Systems is launching an integrated chip design and fabrication facility in Mysuru with an investment of ₹2,342 crore, focusing on compound semiconductors like silicon carbide and gallium nitride.
Karnataka IT Minister Priyank Kharge emphasized the significance of these developments, stating, “Applied Materials India will set up a first-of-its-kind R&D fab in Bengaluru. Spread across 10 acres with ₹4,851 crore investment, it will create 1,500 jobs and become a collaborative platform for next-gen chip and display innovations”.
Strengthening India’s Position in the Global Semiconductor Landscape
These investments align with India’s broader ambition to become a key player in the global semiconductor market. The Indian government has been actively promoting semiconductor manufacturing through its $10 billion incentive program aimed at attracting global chip manufacturers.
The ICSM will unite engineers, suppliers, and academia to develop next-generation manufacturing technologies while training the talent required for India’s expanded role in the global semiconductor ecosystem. A key component of this initiative is an academic outreach program specifically designed to address high-value semiconductor challenges by engaging leading academic institutions like the IITs with practical problem statements.
As these projects materialize, Karnataka is poised to transform into a semiconductor powerhouse, creating thousands of high-value jobs and establishing India as a significant contributor to the global semiconductor supply chain.