Applied Materials to invest $5B in India by 2035
What's the story
US-based semiconductor equipment maker Applied Materials has announced plans to invest $5 billion in India by 2035. The investment will include the establishment of a 140-acre semiconductor research park in Bengaluru and an expansion of its supplier network. The move is aimed at expanding the company's role from chip-equipment design to developing complete products for global customers.
Park details
Research park to have labs and collaborative facilities
The proposed research park near Bengaluru airport will house labs, equipment engineering, and collaborative research facilities.
It will allow suppliers, customers, and universities to work with Applied Materials on product development.
The facility will also have capabilities for research using 300mm silicon wafers used in chip manufacturing.
Expansion plans
Plans to increase supply-chain capacity and expand workforce
Applied Materials plans to increase its supply-chain capacity tenfold by 2035 and expand its network to over 100 production and R&D suppliers.
The company also intends to grow its innovation presence in Chennai and Mumbai, as well as set up a customer-support center in Gujarat.
Currently employing over 7,000 people in India, Applied Materials plans to more than double its workforce specifically for R&D purposes.
Investment impact
Shift from design to complete product development
Prabu Raja, President of Applied Materials's Semiconductor Products Group, emphasized that the investment will help India move from just designing to developing complete products.
"Today, India is participating mostly in the design part of the product life cycle. Now we are talking about the product life cycle end to end," he told TOI.
This holistic approach will cover innovation, design, development, sourcing and customer support.