Applied Materials, the world’s second-largest semiconductor equipment manufacturer, is considering establishing a manufacturing unit in Tamil Nadu, India. This potential move aligns with India’s growing semiconductor market and the company’s strategic ‘China Plus One’ approach.
In August 2024, Applied Materials signed a Memorandum of Understanding (MoU) with the Tamil Nadu government to set up an advanced AI-enabled technology development center in Taramani, Chennai. This center aims to create over 500 high-end jobs and collaborate with local universities and industry partners to strengthen the semiconductor ecosystem in the state.
While the initial focus is on developing the technology center, there is potential for future expansion into manufacturing, depending on government incentives and market conditions. Tamil Nadu is offering subsidies of up to 50% on capital expenditure for semiconductor manufacturing units, making it an attractive location for such investments.
This collaboration underscores the state’s commitment to becoming a leading hub for semiconductor manufacturing and innovation, contributing to India’s broader goal of enhancing its position in the global semiconductor supply chain.
