Applied Materials commits $5bn India investment amid chip push

Applied Materials, a leading supplier of equipment and services to the semiconductor industry, is moving forward with a substantial $5 billion investment in India, capitalizing on the country's aggressive efforts to build a competitive domestic chip manufacturing ecosystem.

The investment underscores India's determination to reduce reliance on imported semiconductors and establish itself as a significant player in global chip production. New Delhi has rolled out enhanced support measures, including subsidies and tax incentives, to encourage semiconductor manufacturers and their supply chain partners to set up operations within the country.

Applied Materials' commitment reflects confidence in India's manufacturing potential and policy framework. The company, which supplies critical equipment to chipmakers worldwide, sees the Indian market as increasingly strategic as global semiconductor supply chains diversify beyond traditional manufacturing hubs.

The move is part of a broader trend of technology companies expanding operations in South Asia. India has positioned itself as an alternative manufacturing destination amid geopolitical tensions and supply chain vulnerabilities that have prompted many firms to seek production bases outside established semiconductor clusters.

The investment is expected to support India's target of attracting major chip fabrication plants and strengthening its position in the semiconductor value chain, from equipment manufacturing to finished chip production.