US semiconductor equipment maker Applied Materials plans to invest $5 billion in India over the next decade as it expands the country’s role from a design and engineering centre to a global hub for developing, testing and exporting chipmaking equipment. 

The company expects equipment built in India to be supplied to semiconductor fabs across the world, including upcoming facilities in India. Applied Materials India President and Managing Director Avi Avula told Moneycontrol that the company wants India to support the complete product development cycle. 

This includes designing equipment, building prototypes, validating them and eventually shipping products to customers globally. The company already operates an India Validation Center with the country’s only 300-mm cleanroom, which supports testing and product development.

The investment will focus on three areas: research and development, building a local semiconductor supply chain and developing specialised talent. Applied Materials plans to establish a 140-acre research park near Bengaluru where suppliers, customers and engineering teams can work together. The facility is expected to shorten development timelines and improve collaboration on complex semiconductor equipment.

The company also plans to increase its India-based supply chain capacity tenfold by 2035. This will involve developing local suppliers while encouraging global component manufacturers to establish operations in India. A stronger supplier ecosystem could help Applied Materials develop and scale equipment from India for customers in multiple markets.

Applied Materials currently employs more than 7,000 people in India, with a large portion working in engineering and design. The company plans to double its R&D workforce as it expands into end-to-end product development. It has also introduced training programmes for engineers and technicians to build specialised semiconductor skills.

The expansion comes as India accelerates its semiconductor ambitions. The country has committed more than $21 billion through semiconductor incentive programmes, while the government has received fresh investment proposals worth around $11-12 billion under Semicon 2.0.

Applied Materials said its India expansion will not depend solely on the pace of domestic chip fabrication. Instead, the company plans to use India as a base to serve the growing global semiconductor industry and integrate Indian-developed equipment into fabs worldwide.

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