Applied Materials to invest $5 billion in India as Modi's flagship chip event kicks off
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US semiconductor equipment manufacturer Applied Materials announced a five billion dollar investment plan spanning the next decade through 2035 under its Vision 2035 framework. The commitment was detailed on Thursday as Prime Minister Narendra Modi inaugurated SEMICON India 2026 at Yashobhoomi in New Delhi. Prabu Raja, president of Applied Materials Semiconductor Products Group, stated that the funding will center on research and development capabilities, scaling up the domestic supply chain tenfold, and fostering workforce growth. The corporate strategy includes establishing a 140-acre research park in India to advance equipment design, testing, validation, and technology development. Prime Minister Narendra Modi emphasized the rapid expansion of India semiconductor landscape, with domestic consumption projected to reach up to 110 billion dollars by 2030. India has committed more than 21 billion dollars across semiconductor incentive programs supporting fabs, display manufacturing, and advanced packaging, reinforcing international corporate ties to secure resilient supply chain alternatives globally.
More context
Timeline
- On June 22, 2023, Applied Materials announced a four hundred million dollar engineering center.
- On September 16, 2026, Karnataka officials confirmed a regional investment agreement for Bengaluru park.
- On September 17, 2026, Prime Minister Narendra Modi inaugurated SEMICON India 2026 in Delhi.
- On September 17, 2026, Applied Materials pledged five billion dollars under Vision 2035 framework.
- On September 17, 2026, company executives detailed plans for a 140-acre advanced research park.
- On September 17, 2026, industry leaders reviewed supply chain expansion targets across ten years.
- On September 17, 2026, government officials highlighted rapid growth in domestic chip consumption forecasts.
- On September 17, 2026, conference participants examined new incentives under India Semiconductor Mission 2.0.
- In coming months, planners will finalize site allocations and infrastructure requirements for the park.
- By 2035, Applied Materials aims to complete its ten-year supply chain scaling targets.
Why it matters
Immediate US impact: US chip equipment suppliers accelerate global supply chain diversification strategies. Possible long-term US impact: Deepened bilateral technology ties enhance semiconductor resilience and manufacturing capacity. Most affected groups: Semiconductor equipment manufacturers, engineering talent, and technology investors in America and India. Reader Priorities: Monitor corporate investor relations disclosures and official government trade announcements.
Coverage notes
Left: Focus on domestic manufacturing job security and corporate incentive scrutiny. Center: Report facts on corporate investment figures and policy frameworks neutrally. Right: Emphasize global market expansion, free enterprise growth, and strategic partnerships.
Primary report
Applied Materials announced five billion dollar investment at SEMICON India.
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
