Global Chipmakers Commit Billions to India's AI-Native Semiconductor Hub

Global semiconductor leaders announced a series of massive investments and infrastructure expansions during SEMICON India 2026 in New Delhi. Applied Materials Inc. committed $5 billion over the next decade to establish a research and development laboratory and a local supply chain, aiming to reduce reliance on global parts sourcing.

Micron Technology CEO Sanjay Mehrotra announced that the company will scale production at its Sanand, Gujarat facility from tens of millions of chips this year to hundreds of billions next year. This growth is driven by the surge in memory and storage demand for artificial intelligence. Simultaneously, ASML Holding is partnering with Tata Electronics Private Limited to support India's first 300mm commercial fabrication facility in Dholera, Gujarat, providing advanced lithography tools and supply chain integration.

Industry executives emphasized India's unique opportunity to build an AI-native ecosystem. Because the infrastructure is being developed now, companies like UST are establishing AI-native assembly and test facilities in Sanand to avoid retrofitting older processes. The Government of India is supporting these efforts through the Semicon 2.0 initiative, which includes plans to train 100,000 technicians.

While commercial production has begun at three chip-packaging plants, large-scale fabrication remains a challenge. The $11 billion Tata Electronics fab in Gujarat has faced delays of nearly two years, though the company recently signed seven memorandums of understanding with supply-chain partners to accelerate progress.