BENGALURU, Feb 12 (Reuters) - Lam Research, a chip toolmaker based in the U.S., announced plans to invest more than 100 billion rupees ($1.2 billion) in India's southern state of Karnataka over the next few years, in support of the nation's efforts to strengthen its semiconductor industry.
At an 'Invest Karnataka' event, Lam Research disclosed that it has entered into a memorandum of understanding (MoU) with the Karnataka Industrial Area Development Board (KIADB) for this significant investment.
The government of Prime Minister Narendra Modi has been actively promoting the growth of India's chip-making sector, including through a $10 billion incentive package, aiming for a projected semiconductor market value of $63 billion by 2026.
With global chip companies establishing operations in India, the country is striving to enhance its semiconductor industry and rival key players like Taiwan.
In a statement on X, India's IT minister characterized Lam Research's investment as a pivotal moment in India's semiconductor journey and a strong vote of confidence in the government's semiconductor vision.
Headquartered in Fremont, California, Lam Research specializes in developing essential tools for semiconductor manufacturing, crucial for various processes in the production of semiconductor devices.
Karnataka, home to the IT hub of Bengaluru, is a significant driver of India's economy, known for its contributions to software, IT services, and manufactured goods exports.
($1 = 86.3690 Indian rupees)