US semiconductor equipment maker Applied Materials plans to invest $5 billion in India over the next decade as the country expands efforts to build a domestic semiconductor ecosystem.
The company announced the investment at SEMICON India 2026 in New Delhi, where more than 600 companies and representatives from 52 countries are participating. Applied Materials said the investment will focus on research and development, expanding the supply chain and strengthening India’s semiconductor workforce.
India is positioning itself as an alternative manufacturing destination as chipmakers seek to diversify supply chains amid rising artificial intelligence demand and geopolitical tensions involving major semiconductor markets.
India’s semiconductor consumption is estimated to reach up to $110 billion by 2030, compared with an estimated $45-50 billion in 2025. The government has committed more than $21 billion through two major semiconductor incentive programmes.
Twelve projects have been approved under the semiconductor programme over the past five years, while three chip-packaging facilities have started commercial production, including a facility operated by Micron Technology.
However, India is yet to produce chips from a large-scale fabrication plant. Tata Electronics’ planned $10 billion semiconductor fabrication facility in Gujarat has also faced delays, with commercial production pushed back by nearly two years.
Applied Materials’ investment adds to growing global industry interest in India’s long-term semiconductor ambitions.
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