Lam Research Commits $1.2 Billion Investment In India, Eyes $63 Billion Semiconductor Growth Market

On Wednesday, U.S. chip equipment maker Lam Research Corp LRCX committed over 100 billion rupees ($1.2 billion) in India’s southern Karnataka state to bolster its semiconductor ecosystem, Reuters reports.

The Indian administration launched initiatives, including a $10 billion stimulus, to make India a global semiconductor manufacturing and design hub.

The country expects its semiconductor market to reach $63 billion in valuation by 2026.

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Karnataka includes Bengaluru, the IT hub, and is a major exporter of software, IT services, and manufactured goods.

The Indian government has already approved Micron Technology, Inc’s MU Sadanand facility, Tata Electronics Private Limited’s chip fabrication unit in partnership with Taiwanese Powerchip Semiconductor Manufacturing Corp, and CG Power’s project in collaboration with Renesas Electronics Corp, Japan, and Stars Microelectronics, Thailand, the Economic Times reports.

The Chip equipment industry has benefited from the artificial intelligence boom by helping manufacture AI chips. Lam Research’s products help chipmakers create smaller, faster, and more powerful electronic devices. 

Lam Research’s peers include Netherlands’ ASML Holding ASML, which designs and manufactures machines that make microchips, and U.S.’s Applied Materials, Inc AMAT and KLA Corp KLAC, which helps create the chips that power many of everyday devices. 

Countries, including the U.S., Japan, China, and Europe, have also provided subsidies and incentives to boost local semiconductor production, especially after the 2020 pandemic in China, which disrupted global semiconductor supply chains and triggered a semiconductor chip crisis. 

According to SEMI, semiconductor manufacturing equipment growth will likely reach $121 billion in 2025 and $139 billion in 2026 from ~$113 billion in 2024, backed by demand for advanced chips in devices like smartphones, PCs, and IoT gadgets.

Lam Research stock surged 15% year-to-date. At least four Wall Street firms reduced their price forecasts on the stock, and two increased their price targets in 2025. At least two Wall Street firms, including KeyBanc and Cantor Fitzgerald, upgraded their stock rating and a downgrade by Wolfev Research in 2025.

CNBC’s Jim Cramer recommended buying Lam Research, citing its cheap valuation.

Goldman Sachs’ Toshiya Hari expects Lam Research to outperform its peers backed by recovery in the wafer fab equipment market, adoption of Gate-All-Around transistors in leading-edge foundry/logic, and technology transitions in 3D NAND.  

Price Action: LRCX stock closed lower by 2.89% at $80.90 at the last check on Wednesday.

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