Lam Research to invest $1.2 billion in Karnataka

US chip toolmaker Lam Research has announced an investment of INR 100 billion (USD 1.2 billion) in the next few years in the southern Indian state of Karnataka.  

Lam Research has signed a memorandum of understanding (MoU) with the Karnataka Industrial Area Development Board (KIADB) for the investment.

“One more milestone in our semiconductor journey: Lam Research announces major investment of over Rs 10,000 cr in India. Big vote of confidence in PM @narendramodi Ji’s semiconductor vision,” Union minister Ashwini Vaishnaw said on social media platform X (formerly Twitter).

“In July 2024, Lam announced its decision to expand its supply chain to India. Significant progress is already made with several custom parts and high precision components made by suppliers in India passing Lam’s qualification cycle,” “Lam’s India general manager Rangesh Raghavan said in a post on LinkedIn. “Plans are underway to scale the India supply chain operation over the next few years to support global resilience objectives.”

The California-based company develops tools for chip manufacturing. Its products are used in wafer-processing and wiring of semiconductor devices.

The Indian government has been trying to grow India’s chipmaking industry with a USD 10 billion incentive package along with other measures.

India expects its chip market to be worth USD 63 billion by 2026.

In February 2024, the Indian government approved the establishment of three semiconductor manufacturing units. Tata Electronics is spearheading the development of two of these facilities — the USD 11-billion chip manufacturing plant in collaboration with PSMC in Dholera and the USD 3.26-billion facility in Assam.