The world's second-largest fab toolmaker, Applied Materials, with annual revenue of $26.52 billion, is planning to establish a manufacturing unit in India.

Fab units globally cannot operate without equipment from four key suppliers — Applied Materials, ASML, KLA and Tokyo Electron, according to experts.

With more semiconductor manufacturing units being planned in India, top toolmakers are also eyeing the country’s market.

If sources are to be believed, the firm may be looking at Tamil Nadu for its ambitious plans.

This is also considered to be a China Plus One strategy, since the company recently lost its top spot as the leading semiconductor equipment maker to ASML. It depends on China for 43 per cent of its sales despite restrictions from the United States.
 
Applied Materials is looking to establish an advanced artificial intelligence (AI)-enabled technology development centre for semiconductor and equipment manufacturing in Taramani, Chennai. This is set to create 500 jobs.