Applied Materials plans Rs 3,600 crore investment in Karnataka: MB Patil

Bengaluru: US-based semiconductor equipment maker Applied Materials plans to invest Rs 3,600 crore in Karnataka over the next 10 years, industries minister MB Patil said on Tuesday.

The company has signed an MoU with the Karnataka government for the project, which will come up at Bengaluru Signature Business Park near Kempegowda International Airport, Patil said in a statement.

Applied Materials will focus its investment on research and development, manufacturing of semiconductor equipment and development of software technologies used in chip production, he said.

The project is expected to create around 1,000 jobs. It will be the first industrial project to come up at Bengaluru Signature Business Park, Patil said.

The Karnataka cabinet had in April approved the allotment of 140 acres at Bengaluru Signature Business Park to Applied Materials on a lease-cum-sale basis for Rs 780 crore. The land was valued at Rs 1,288 per sq ft, with the allotment subject to regulatory clearances.

The cabinet had also directed the government to review the land disposal policy for the remaining 267 acres at the business park, including options such as competitive bidding and public-private partnerships.

Patil said the government would provide support to Applied Materials at every stage of the project. The company has been operating in India for two decades and has made Bengaluru one of its key operational centres.

The investment by Applied Materials, which has a strong presence in materials engineering and semiconductor equipment, will further strengthen Karnataka's semiconductor ecosystem, Patil added.