Semiconductor Equipment Maker Applied Materials Commits $5 Billion to India — Room for Japan to Partner on Materials

On September 17, 2026, semiconductor equipment giant Applied Materials announced at SEMICON India 2026 in New Delhi that it will invest $5 billion (approx. ¥775 billion, based on an exchange rate of $1≈¥155 as of September 2026) in India's semiconductor ecosystem over the next 10 years. The three pillars are deepening R&D within India, expanding the supply chain, and developing talent, including the establishment of a new 140-acre advanced semiconductor research center. For Japanese manufacturers that supply upstream equipment and materials, this serves as a concrete gauge of how serious India's semiconductor localization drive really is.

The News: Applied Materials Announces $5 Billion India Investment Over 10 Years

Prabhu Raja, president of the company's Semiconductor Products Group, made the announcement at the SEMICON India 2026 venue (Yashobhoomi). The investment is part of "Applied Materials India Vision 2035," under which the company will build a new 140-acre advanced semiconductor research center equipped with clean rooms, with a goal of expanding the capacity of its India-based supply chain tenfold by 2035. The amount is $5 billion, equivalent to roughly 47,980.8 crore rupees (about 479.8 billion rupees) in Indian rupee terms, over the next 10 years.

Background: Investment Flows Into the Second Act of the India Semiconductor Mission

The announcement coincides with the launch of the Indian government's semiconductor promotion policy, ISM 2.0 (Semicon 2.0). Backed by this government program, major global equipment and materials makers are announcing India commitments one after another. In the same vein as Fujifilm's announcement of a new semiconductor materials plant just ahead of SEMICON, upstream players continue moving to secure their place in India's manufacturing base.

Where Will the $5 Billion Go — Research Center, Supply Chain, and Talent

Applied Materials has laid out a clear picture of how the funds will be used. First is the 140-acre research center, equipped with clean rooms, to run equipment and process development locally. Second is the supply chain, expanding India-based procurement capacity tenfold by 2035. Third is talent development, to build up the local engineering workforce. Placing both research and supply chain functions in India at once signals an intent to move not just the "selling" of equipment but the foundation for "building" it into the country.

How it is being received locally and in the industry

According to Inc42's reporting, this commitment was treated as one of the larger investment announcements among the series unveiled at SEMICON India 2026. The government's ISM 2.0 is described as a framework worth a total of 1.28 lakh crore rupees (about 1.28 trillion rupees), with investment commitments and job creation from multiple companies reported. Applied Materials' own job creation plans and specific location within India had not been disclosed as of the time of reporting.

Implications for Japanese Companies: Remaining Entry Points Upstream in Materials and Equipment

When a major equipment maker sets up a research center and supply chain locally, demand gathers around it for photoresists, slurries, gases, components, and precision parts — an area where Japan's chemical and materials makers are strong. The shift of production from China to India is already underway in the chemical industry, and Mitsui Chemicals and Sumitomo Chemical's shift away from China toward India and the investment shift among Japanese chemical makers can be read as part of the same continuum. Downstream, Indian companies winning contracts to assemble Japanese automotive chips is also happening in reverse, opening up room for Japanese technology to enter on both the upstream and downstream sides.

Market Ripple Effects: Where Equipment Goes, Materials and People Follow

Localizing equipment brings with it the localization of materials procurement and talent. Investment in India is also building up on the financial side, and MUFG's large-scale investment in a major Indian financial company illustrates a pattern in which financial backing reinforces localization. For Japanese component makers, bringing evaluation samples in step with the launch of the research center is a realistic entry point.

Practical information and related links

• Mitsui Chemicals and Sumitomo Chemical speed up their move away from China, making India the next growth base
• Indian companies winning contracts to assemble Japanese automotive chips
• India Startup Funding Reaches $2.3 Billion in Q1 2026

Summary: Wait for the Research Center's Location to Be Announced, Then Enter the Evaluation Pipeline

Applied Materials has spelled out the scale of its commitment: $5 billion over 10 years and a 140-acre research center. The next move for Japanese materials and component makers is to reach out early for evaluation-sample supply and joint development once the center's location and clean-room start date are announced. The dividing line will be whether they can make contact before procurement sources are locked in during the process of scaling the supply chain tenfold.

Sources

• Inc42"Applied Materials Commits $5 Bn To Boost India’s Semiconductor Ecosystem"