American semiconductor equipment producer Applied Materials India is planning to establish a chip manufacturing center in Bengaluru, which could attract more than $2 billion in future investments, according to Suraj Rengarajan, managing director and head of the semiconductor products group at Applied Materials India.

His remarks follow the recent approval by Karnataka's cabinet sub-committee of three semiconductor projects in the state, including one from Applied Materials. The company is set to invest $400 million over the next four years in this facility.

"Our goal is to create an Innovation Center for Semiconductor Manufacturing (ICSM) in India, aimed at provoking over $2 billion in investments, generating high-tech job opportunities, and speeding up semiconductor innovation," stated Rengarajan.

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In addition, fellow American chip equipment manufacturer Lam Research will establish two units in Karnataka: an advanced research and development lab with an investment of Rs 6,790 crore and a semiconductor silicon component manufacturing facility costing Rs 9,111 crore, which will result in the creation of 1,400 jobs and provide cutting-edge capabilities in 2nm technology and silicon ingot production.

To ensure proximity to its customers, Lam Research consistently assesses opportunities for expanding its footprint in key global locations. As previously mentioned, this includes India, where the company has maintained a substantial presence for 25 years, in addition to other regions across the United States, Asia, and Europe.

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“Applied Materials India is set to establish a unique R&D fabrication facility in Bengaluru. Covering an area of 10 acres with an investment of Rs 4,851 crore, it will create 1,500 jobs and serve as a collaborative hub for next-generation chip and display innovations," Karnataka IT minister Priyank Kharge says.