Lam Research plans $1.2 billion facility for making chip manufacturing tools in India

Lam Research, the US-based manufacturer of tools for making semiconductor chips, is investing over Rs10,000 crore ($1.2 billion) for setting up a manufacturing facility in Karnataka.

The company will be making the investment over the next few years, which will give a boost to India’s semiconductor manufacturing ecosystem, minister for railways, information and broadcasting and electronics and IT, Ashwini Vaishnaw stated in a post on social media platform X.

The social media website of the state also said that the US company signed a memorandum of understanding (MoU) with the Karnataka Industrial Area Development Board (KIADB) during an 'Invest Karnataka' event on Tuesday.

Rangesh Raghavan, general manager of Lam Research in India, signed the MoU with the Karnataka government to lease and eventually purchase a land parcel at Whitefield in Bengaluru.

The chip tool making facility will help create a sustainable semiconductor ecosystem in the country, facilitating further investments in the sector.

The India Semiconductor Mission has so far approved five major projects, with a combined outlay of Rs76,000 crore. 

These include the Rs91,000 crore facility being set up by Tata Electronics in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) in Dholera, Gujarat.

India’s semiconductor market is estimated to grow from $38 billion in 2023 to $109 billion by 2030. 

Launched in 2021 with a financial outlay of Rs76,000 crore, the India Semiconductor Mission (ISM) aims to position India as a leader in electronics manufacturing and design.