Lam Research To Invest Rs 10,000 Crore In Karnataka’s Semiconductor Industry

New Delhi, Feb 12 (KNN) American semiconductor equipment manufacturer Lam Research has announced plans to invest Rs 10,000 crore in India, marking another significant development in the country's growing semiconductor industry.

The announcement was made by Union Minister Ashwini Vaishnaw on Tuesday, with the investment expected to be directed towards Karnataka.

Lam Research, which specialises in developing essential tools for semiconductor manufacturing, will partner with the Karnataka Industrial Areas Development Board (KIADB) for this initiative.

Sesha Varadarajan, Senior Vice President, Lam Research, confirmed the investment during the Invest Karnataka 2025 – Global Investors Meet, where a Memorandum of Understanding was signed with the state authorities.

This development follows India's 2021 semiconductor initiative, where the Central government introduced a Rs 76,000 crore incentive package to attract semiconductor manufacturers.

The country's semiconductor journey gained momentum in June 2023 when American company Micron Technology announced a Rs 22,500 crore investment for a testing and packaging facility in Gujarat.

The semiconductor manufacturing landscape in India has seen rapid expansion in recent months. In February 2024, the government approved three major proposals totaling Rs 1.26 lakh crore.

These include Tata Electronics' Rs 91,000 crore project in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corp to establish India's first semiconductor fab unit in Dholera, Gujarat.

Additionally, Tata is investing Rs 27,000 crore in a Semiconductor Assembly and Test facility in Morigaon, Assam, while CG Power is collaborating with Japan's Renesas Electronics and Thailand's Stars Microelectronics on a Rs 7,600 crore project.

The entry of Lam Research, known for its expertise in wafer processing and semiconductor device wiring, represents another milestone in India's efforts to establish itself as a global semiconductor manufacturing hub.

This investment is expected to strengthen the country's semiconductor ecosystem and contribute to the development of domestic chip-making capabilities.

(KNN Bureau)