Applied Materials has committed $5 billion over the next decade to expand its semiconductor R&D, supply chain and talent footprint in India, as the US chip equipment maker looks to integrate the country more deeply into the global semiconductor value chain.
Speaking at Semicon India 2026 on Thursday, Prabu Raja, President of Semiconductor Products Group at Applied Materials, announced this investment.
Three-pillar approach
“This has a three-pillar approach. One, deepen our R&D in India. Two, accelerate the ecosystem in India. Three, grow future talent in India. Applied was among the first to establish a semiconductor engineering capability center. In 2024, we ordered India’s first 300 mm lab. Today, we are committing to a new 140 acre advanced semiconductor research park, bringing together cleanroom capabilities, engineering expertise, and collaborative R&D with customers and suppliers on one side,” he said.
Raja added that inventions from India must scale globally. By 2035, the company aims to grow its India-based supply chain capacity ten times, creating opportunities for Indian suppliers and bringing global suppliers here. This will help Applied Materials broaden its geographic footprint and compete globally.
He also highlighted that AI has one defining challenge: delivering far more computing power while using far less energy. This requires more powerful and energy-efficient chips, with Applied Materials’ technologies playing a foundational role in their production.
He said addressing this challenge would require a new approach to innovation, as traditional sequential development takes too long and no single company can do it alone.
High-velocity innovation
Raja also called for a parallel model that enables high-velocity innovation and high-volume manufacturing, bringing equipment makers, customers, suppliers and universities together. He said India has the talent base to lead this model if it continues to develop and connect talent with advanced technology labs and training.
Meanwhile, the company’s India team has grown more than four times in a decade, to over 7,000 people today. By 2035, it plans to double its India R&D workforce and expand university partnerships and talent development.
“For over a decade, Applied Materials has been part of India’s semiconductor journey, and we believe the greatest opportunities are still ahead. Make in India for the world, invent in India for the world, integrate the ecosystem in India for the world,” he noted.