Microchip to invest $300 million to expand in India, joining rival chipmakers

Microchip Technology Inc.
MCHP,
+3.00%
said Monday it will invest $300 million over multiple years to expand its presence in India. The company already has about 2,500 employees in India and will now upgrade its Bangalore and Chennai facilities and the new R&D center in Hyderabad. It expects to expand its engineering labs, accelerate hiring and launch a range of Corporate Social Responsibility programs. The company cited IESA and Counterpoint Research reports that India’s chip market is expected to reach $64 billion by 2026, nearly triple the $22.7 billion counted in 2019. “Microchip is making a significant strategic commitment to growing our operations in India, whose meteoric growth has established it as one of the top sources of business and technical resources in our sector,” CEO Ganesh Moorthy said in a statement. Rival chipmakers Micron Technology Inc.
MU,
-1.90%
and Applied Materials Inc.
AMAT,
+0.21%
also recently announced plans to expand in India. Microchip stock has gained 28% in the year to date, while the S&P 500
SPX,
+1.23%
has gained 16%.