Introduction
Global semiconductor equipment majors Lam Research and Applied Materials announced major new India investments at SEMICON India 2026 in New Delhi, with Lam Research committing approximately Rs 10,000 crore to build its first local silicon component manufacturing facility and Applied Materials unveiling a $5 billion, decade-long "India Vision 2035" commitment.
Lam Research's Plan
Sesha Varadarajan, Executive Vice President and Chief Operating Officer of Lam Research, said the proposed facility will support a fully vertically integrated manufacturing process spanning silicon ingot production and processing for advanced semiconductor technologies. The facility will also serve as a manufacturing and export base for the company's global operations, marking a shift from Lam's traditional India focus on research and engineering toward physical manufacturing.
Key Facts
| Company | Commitment | Focus |
|---|---|---|
| Lam Research | ~Rs 10,000 crore (~$1.2 billion) | First silicon component manufacturing facility in India |
| Applied Materials | $5 billion over 10 years | R&D, ecosystem integration, talent development |
Applied Materials' Vision 2035
Prabhu Raja, President of the Semiconductor Products Group at Applied Materials, announced the company's India Vision 2035, describing it as a $5 billion investment over the next decade to accelerate and integrate India's semiconductor ecosystem into the global value chain. The plan includes constructing a 140-acre advanced semiconductor research park, a tenfold expansion of India-based supply-chain capacity, and doubling its R&D workforce by 2035.
What the Investments Involve
- Lam Research: silicon ingot production and processing for advanced chip nodes, plus export base for global operations
- Applied Materials: 140-acre research park, 10x supply-chain capacity growth by 2035, doubled R&D workforce
- Lam's Semiverse initiative aims to train up to 60,000 Indian students over 10 years, with over 99 universities already participating
- Applied Materials has maintained an India presence for two decades, currently employing over 7,000 staff
Talent Development Component
Both companies emphasised workforce development alongside capital investment. Varadarajan said Lam expects to exceed its Semiverse training target of 60,000 students earlier than originally planned, working with the Indian Institute of Science and the India Semiconductor Mission to expand access to semiconductor manufacturing education.
Why These Announcements Matter
Equipment makers like Lam Research and Applied Materials sit upstream of chip fabrication itself, supplying the specialised machinery used to etch, deposit and clean layers on every advanced chip manufactured globally. Their willingness to build local manufacturing and expand supply-chain capacity in India, rather than purely research operations, signals growing confidence in the country's semiconductor policy framework, including the recently announced Semicon 2.0 programme.
Expert Insight
Industry analysts note that equipment supplier investment is a particularly meaningful signal for India's semiconductor ambitions, since global chip fabrication remains dependent on a small number of specialised equipment providers. Both Lam Research and Applied Materials moving beyond a purely research and engineering presence toward manufacturing and expanded local supply chains suggests the companies see durable, long-term demand from India's semiconductor buildout rather than a short-term policy-driven opportunity.
Key Takeaways
- Lam Research will invest approximately Rs 10,000 crore to build its first India manufacturing facility.
- Applied Materials committed $5 billion over a decade under its India Vision 2035 plan.
- Both announcements came at SEMICON India 2026, which drew over 600 companies from 52 countries.
- The investments support India's broader Semicon 2.0 semiconductor ecosystem programme.
FAQ
How much is Lam Research investing in India?
Approximately Rs 10,000 crore to build its first silicon component manufacturing facility in the country.
What is Applied Materials' India Vision 2035?
A $5 billion, decade-long commitment to expand R&D, build a 140-acre research park, and grow India-based supply-chain capacity tenfold by 2035.
Where were these announcements made?
At SEMICON India 2026 in New Delhi.
Conclusion
Combined commitments exceeding $6 billion from two of the world's leading semiconductor equipment makers mark a significant vote of confidence in India's chip manufacturing ambitions. Execution over the coming years, rather than the announcements themselves, will determine how much these investments actually reshape India's position in the global semiconductor supply chain.
