Applied Materials is deepening its commitment to India's semiconductor sector with a major investment in Bengaluru. The U.S. chip equipment giant is establishing the Innovation Center for Semiconductor Manufacturing (ICSM), a 10-acre collaborative R&D hub focused on the development and commercialization of advanced chip and display manufacturing technologies.

The company is investing $400 million over four years in the new engineering center, which is expected to catalyze over $2 billion in investments within five years, creating at least 500 advanced engineering jobs and potentially 2,500 more in the broader ecosystem. The ICSM will unite engineers, suppliers, and academic institutions to co-develop next-generation semiconductor equipment, with full product development capabilities for both India and global markets.

Suraj Rengarajan, Managing Director and Head of the Semiconductor Products Group at Applied Materials India, confirmed the initiative's goal to accelerate innovation and expand India's role in the global supply chain. He emphasized that co-creation with ecosystem partners at ICSM will shorten R&D timelines and speed up commercialization of sub-systems by replicating real-world fab conditions.

In addition to the ICSM, Applied Materials recently inaugurated a $20 million India Validation Center (IVC) in Bengaluru, which is the first private facility in India capable of 300-mm wafer processing. The IVC will support early-stage development for the ICSM and provide hands-on training to help grow India's engineering talent base.

The announcement comes shortly after Karnataka's cabinet sub-committee approved three semiconductor projects, including Applied Materials' ICSM. Karnataka IT Minister Priyank Kharge stated that the ICSM will create 1,500 jobs and position the state as a rising semiconductor hub.

Applied's broader strategy includes academic outreach, working with leading institutions such as the IITs to address high-value semiconductor challenges through practical, industry-aligned R&D.

Meanwhile, Lam Research, another American chip equipment company, is also expanding in Karnataka with two facilities: a Rs 6,790 crore advanced R&D lab and a Rs 9,111 crore silicon component manufacturing plant, expected to generate 1,400 jobs and support next-generation 2nm node and ingot capabilities.

Additionally, Bharat Semi Systems, a Delhi-based firm, is setting up an integrated semiconductor design and fab facility in Mysuru with a Rs 2,342 crore investment, focusing on compound semiconductors such as SiC and GaN for applications in defense, telecom, and clean energy. The facility is projected to create over 620 jobs.

Together, these projects underscore Karnataka's growing role in India's semiconductor roadmap, with Bengaluru emerging as a key center for advanced manufacturing and innovation.