US semiconductor equipment manufacturer Applied Materials has announced plans to invest $5 billion in India over the next decade as the country’s semiconductor industry takes centre stage at Semicon India 2026 in New Delhi.
The announcement came as the three-day semiconductor conference opened with more than 600 companies and representatives from 52 countries taking part in the event.
Applied Materials said its planned investment would focus on research, strengthening the semiconductor supply chain and developing the workforce required for the growing industry.
India has been seeking to establish itself as a major semiconductor manufacturing and technology hub as global companies look to diversify their supply chains. The country has committed more than $21 billion through two semiconductor incentive programmes to attract investments.
Prime Minister Narendra Modi, addressing the event, said India was preparing to become a reliable manufacturing location as global demand for chips continues to increase.
Semiconductors are essential components in smartphones, computers, vehicles, communication equipment, artificial intelligence systems and a wide range of industrial technologies. Demand has increased rapidly with the expansion of AI and advanced computing.
India’s semiconductor consumption is projected by the government to reach around $110 billion by 2030, compared with an estimated $45-50 billion in 2025.
The country has approved 12 semiconductor projects under its incentive programme, while three chip-packaging facilities have already begun commercial production.
However, large-scale chip fabrication remains a major challenge. The country’s flagship Tata Electronics fabrication project in Gujarat has faced delays, highlighting the capital and technology requirements involved in establishing advanced semiconductor manufacturing.
The new investment announcement adds to India’s efforts to develop capabilities across chip design, manufacturing, packaging, equipment and research.
The sector is also expected to generate demand for engineers, technicians and specialised manufacturing professionals.
Semicon India 2026 is providing a platform for global semiconductor companies, Indian manufacturers and policymakers to discuss investment, technology development and supply-chain expansion.
The latest investment commitment indicates continued international interest in India’s semiconductor ambitions as the global industry undergoes major changes. (reuters.com)
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