Lam Research, a leading US-based chip toolmaker, has announced plans to invest over 100 billion rupees ($1.2 billion) in Karnataka, India. The company has signed a memorandum of understanding with the Karnataka Industrial Area Development Board to facilitate the investment, which was revealed during the 'Invest Karnataka' event.

The initiative aligns with India's efforts to strengthen its semiconductor ecosystem. Prime Minister Narendra Modi's government has introduced a$10 billion incentive programme to attract global chip firms. With semiconductor market projected to reach$63 billion by 2026 in India, the country is emerging as a significant player in the global semiconductor race.

Karnataka, home to Bengaluru, serves as a critical driver of India's economy. Known for its contributions to IT services, software, and manufacturing exports, the state is increasingly positioning itself as a hub for high-tech investments.

India's IT minister hailed Lam Research's investment as a major step in the nation's semiconductor ambitions. The announcement reflects growing confidence in the government's vision for a robust and competitive semiconductor industry.