Semiconductor equipment manufacturer Lam Research has announced plans to invest over Rs 10,000 crore (approximately $1.2 billion) in Karnataka over the next few years. The announcement was made by Sesha Varadarajan, Senior Vice President of the Global Products Group at Lam Research, during the inaugural session of Invest Karnataka 2025.
The company, which develops semiconductor manufacturing tools for wafer processing and device wiring, has signed a memorandum of understanding with the Karnataka Industrial Areas Development Board for the investment. The agreement includes the allocation of land for the proposed facility.
This investment aligns with India’s efforts to enhance its semiconductor manufacturing capabilities. The Indian government has introduced a $10 billion incentive package to promote domestic chip production, aiming to reduce reliance on imports. The country’s semiconductor market is projected to reach $63 billion by 2026.
Karnataka, home to the IT hub of Bengaluru, has been a focal point for semiconductor and electronics manufacturing. The state has incubated 43 startups in the fabless semiconductor sector over the past five years through the Semiconductor Fabless Accelerator Lab initiative, supporting over 90 companies and generating approximately 800 jobs in the Electronic Systems Design and Manufacturing sector.
In 2022, Lam Research expanded its presence in Karnataka by opening the India Center for Engineering in Bengaluru. This facility focuses on research and development, engineering, and testing of wafer fabrication hardware and software for next-generation technologies.
Lam Research’s investment is expected to further bolster Karnataka’s semiconductor ecosystem, contributing to India’s goal of becoming a significant player in the global semiconductor industry.