Startup Originals Team
Applied Materials, a leading US-based semiconductor equipment manufacturer, has made headlines with one of Bengaluru’s largest commercial real estate deals, leasing over 8 lakh square feet of office space at International Tech Park Bangalore (ITPB) in Whitefield. This move showcases the company’s ambitious growth strategy in India, a country positioning itself as a global semiconductor powerhouse.
Deal Details and Financials:
The 10-year lease, effective from April 1, 2025, is valued at around ₹855 crore. Applied Materials will occupy the ground and 15 upper floors of the ITPB-Endeavour (MTB 6) building, paying a monthly rent of ₹5.97 crore, which translates to ₹74 per square foot. The lease contract includes a 15% rent escalation every three years, along with a security deposit of ₹35.8 crore. Notably, the agreement grants the company a hard option to lease an additional 3 lakh square feet in the future Tower 8, which is expected to be ready by October 2027.
Expansion and Operations in India:
This strategic lease aligns with Applied Materials’ ongoing expansion in India. In 2022, the company acquired nearly 10 acres of land and 2.6 lakh square feet of office space in Whitefield for ₹338 crore. Its Indian subsidiary currently operates from five office blocks in the Export Promotion Industrial Park (EPIP) Phase II. The new ITPB office will house Applied Materials’ expanding operations and serve as the base for its upcoming Innovation Center for Semiconductor Manufacturing (ICSM), a pioneering R&D fab in India with a planned investment of ₹4,851 crore and expected to create approximately 1,500 jobs.
Karnataka’s Push for Semiconductor Leadership:
Karnataka’s government, led by IT & Biotechnology Minister Priyank Kharge, has championed this investment, calling it a major boost to the state’s semiconductor and technology sector. The new ICSM in Bengaluru aims to unite engineers, suppliers, and academic institutions, fostering next-generation chip and display innovation. The project is also set to provide specialized R&D platforms, workforce development, and deeper collaboration between industry and academia, strengthening India’s role in the global semiconductor supply chain.
India’s Semiconductor Ambitions:
This deal comes as India accelerates efforts to become self-reliant in semiconductor manufacturing. At the recent Semicon India 2025 conference, Prime Minister Narendra Modi referred to semiconductor chips as the “digital diamond” of the age, revealing India’s first homegrown 32-bit processor, Vikram. Applied Materials’ investment is one among several major semiconductor projects recently approved in Karnataka, collectively signaling a bright future for advanced technology industries in India.
This development by Applied Materials marks a transformative step for both Bengaluru and India’s rapidly growing semiconductor ecosystem, promising innovation, job creation, and global competitiveness.
