U.S. semiconductor toolmaker Applied Materials said it will invest $400 million over four years in a new engineering center in India.
The Capital expenditure of Applied Materials touched $255 million during its second quarter.
The new engineering center is expected to be located near the company’s existing facility in Bengaluru and is likely to support more than $2 billion of planned investments and create 500 new advanced engineering jobs.
Applied Material currently operates across six sites in India and works closely with Indian Institute of Science, Bangalore and the Indian Institute of Technology in Mumbai, two of the country’s prestigious institutions.
“We envision Applied’s strong base of engineering talent collaborating more deeply with domestic and global companies operating in India to strengthen the foundational equipment supply chain serving the global semiconductor manufacturing industry,” Prabu Raja, President of the Semiconductor Products Group at Applied Materials, said.
Applied Materials generated revenue of $6.63 billion (+6 percent) with gross margin of 46.7 percent, operating income of $1.91 billion or 28.8 percent of net sales, and earnings per share (EPS) of $1.86 for its second quarter ended April 30, 2023.
Narendra Modi, Prime Minister of India, had met with Applied Materials CEO Gary Dickerson in Washington on Wednesday and invited the company to strengthen the chip industry in the country.
Data storage chipmaker Micron also announced $825 million investment to build a new factory in India.