United States-based chip toolmaker company Lam Research said it will invest more than 100 billion rupees ($1.2 billion) in the southern Indian state of Karnataka in the next few years.
The mentioned financial injections will be another action to implement the specified Asian country’s plans to strengthen its semiconductor ecosystem.
Last Tuesday, February 11, during the Invest Karnataka event, Lam Research announced that it had signed a memorandum of understanding with the Karnataka Industrial Area Development Board (KIADB) for the investment.
The government of the Prime Minister of India Narendra Modi is currently making efforts to develop the nascent domestic chip manufacturing industry. Various measures are being taken as part of these efforts, including a $10 billion incentive package. The financial volume of the Indian semiconductor market is expected to reach $63 billion by 2026.
Recently, global chip manufacturers have been investing in India and building production facilities in this country. This means what can be described as a qualitative scaling of the local semiconductor industry. It is worth noting that in this case, the current geopolitical tension is the impact factor. Against the background of the consistent deterioration of relationships between China and the United States, many Western companies, seeking to maintain their presence in Asia, which is a promising market, and fearing sanctions from Washington for active cooperation with Beijing, are beginning to consider India as an alternative manufacturing center.
Lam Research, based in Fremont, California, develops essential tools for semiconductor making. The company’s products are used for a wide range of wafer processing and wiring of semiconductor devices.
Karnataka, where the Bengaluru IT hub is located, is one of the top contributors to the Indian economy and the largest exporter of software, IT services, and manufactured goods. Lam Research’s investments will enhance the strategic importance of this state for the country.
As we have reported earlier, Microsoft to Invest $3 Billion in India.
