Bengaluru’s New Chip Innovation Hub May Attract Over $2 Billion Investment
American semiconductor equipment giant Applied Materials is planning to establish a major semiconductor innovation hub in Bengaluru, Karnataka. According to a report by The Economic Times, the new facility, called the Innovation Center for Semiconductor Manufacturing (ICSM), is expected to attract over $2 billion in investments and significantly boost India’s semiconductor capabilities.
Suraj Rengarajan, Managing Director and Head of Semiconductor Products Group at Applied Materials India, stated that the Bengaluru-based ICSM will be a collaborative space for chip and display innovation. Spread across 10 acres, the centre will receive an initial investment of ₹4,851 crore (around $400 million) over four years and create around 1,500 high-tech jobs. The facility will unite engineers, academic institutions, and suppliers to co-create advanced semiconductor manufacturing technologies and accelerate innovation.
Rengarajan also noted that the centre’s R&D fab will provide a real-world environment for testing equipment subsystems under actual chipmaking conditions. The goal is to reduce R&D time, speed up product development, and fast-track commercialisation. Applied Materials is also focusing on engaging Indian academia, such as the IITs, with real-world semiconductor challenges to boost industry-focused research and talent development.
The move comes shortly after Karnataka’s cabinet sub-committee cleared three semiconductor projects, including Applied Materials’ ICSM.
In addition, Lam Research, another major U.S.-based chip equipment company, is investing heavily in Karnataka. It will set up an advanced R&D lab with ₹6,790 crore investment and a silicon component manufacturing unit with ₹9,111 crore investment, aiming to create 1,400 jobs and develop 2nm chip technology and silicon ingots.
Also joining India’s semiconductor ecosystem is Bharat Semi Systems, which plans to establish an integrated design and fab unit in Mysuru with ₹2,342 crore investment and is expected to generate over 620 jobs. This facility will focus on compound semiconductors like silicon carbide and gallium nitride, which are essential for defence, telecom, and climate-resilient technologies.
India is rapidly emerging as a global semiconductor hub, and these investments are a major step in that direction.
Source: The Economic Times
