US Chip Toolmaker Lam Research to Invest $1.2 Billion in Karnataka

Lam Research, a US-based manufacturer of tools for making semiconductor chips, has announced an investment of $1.2 billion in Karnataka. This investment will be made over the next few years and aims to boost India's semiconductor manufacturing ecosystem. The company signed a memorandum of understanding (MoU) with the Karnataka Industrial Area Development Board (KIADB) during the 'Invest Karnataka'.

The facility will be located in Whitefield, Bengaluru, and is expected to create a sustainable semiconductor ecosystem in the country.

This move is part of India's broader plan to grow its nascent chipmaking industry, supported by a $10 billion incentive package from the government. The goal is to position India as a leader in electronics manufacturing and design.

Lam Research is a leading American company that specializes in developing tools essential for semiconductor manufacturing. The tools manufactured by Lam Research are used in wafer processing and wiring of semiconductor devices.

Lam Research is one of the largest semiconductor wafer fabrication equipment manufacturers in the world. The company specializes in the deposition and etch segments of the semiconductor manufacturing process. It holds the top market share in etch and the second-largest share in deposition. Some of its top customers include major chipmakers like TSMC, Samsung, Intel, and Micron.

Lam Research has been associated with India for over 25 years. The company's India Center for Engineering (ICE) in Bengaluru is a critical part of its global R&D and operations footprint.

Lam Research's $1.2 billion investment is part of a larger trend of substantial investments in India's semiconductor industry.

Tata Electronics has partnered Powerchip Semiconductor Manufacturing Corporation (PSMC) to set up a $91 billion facility in Dholera, Gujarat. Micron Technology's Sadanand Facility is another major project approved by the Indian government.

The investment is supported by both central and state government incentives under the India Semiconductor Mission (ISM). The ISM has approved five semiconductor units, including Lam Research's, with a total outlay of ₹76,000 crore.

Overall, the Indian government has approved several large-scale projects, with a combined outlay of $76 billion under the India Semiconductor Mission (ISM). The goal is to grow the semiconductor market from $38 billion in 2023 to $109 billion by 2030.