US chip equipment giant KLA to tnvest ₹3,600 crore in Chennai R&D campus

American semiconductor equipment major KLA Corporation has signed a memorandum of understanding with the Tamil Nadu government to invest $400 million (around ₹3,600 crore) in setting up a global Research & Development and Innovation Campus in Chennai, marking one of the largest semiconductor-focused investments in the state to date. 

The announcement was made by State Industries Minister T R B Rajaa on February 13, who said the facility is expected to generate up to 4,000 high-skilled jobs and further strengthen Tamil Nadu’s positioning in the global electronics and semiconductor value chain. The agreement was signed with the state’s investment promotion agency Guidance Tamil Nadu. 

The proposed campus will function as a global hub for advanced semiconductor R&D, focusing on innovation, engineering design, and next-generation manufacturing technologies. The investment aligns with India’s broader push to build a domestic semiconductor ecosystem, reduce import dependence, and attract high-value technology partnerships. 

Boost to India’s semiconductor ambitions 

The investment comes at a time when India is accelerating efforts to build a full-stack semiconductor ecosystem — spanning design, fabrication, packaging, and equipment support — through a mix of policy incentives and state-led industrial initiatives. 

Industry observers note that attracting equipment and technology leaders like KLA is a critical step because semiconductor ecosystems rely not just on fabs, but also on the highly specialised tools, metrology systems, and research capabilities that enable advanced manufacturing. 

Why this matters for Tamil Nadu 

Tamil Nadu has been actively positioning itself as a preferred destination for semiconductor and electronics investments, leveraging: 

• A strong base in electronics manufacturing services (EMS) 
• Established automotive and industrial supply chains adaptable to chip-related manufacturing 
• A deep engineering talent pool graduating from the state’s technical institutions 
• Mature infrastructure, ports, and connectivity that support global operations 

The KLA campus is expected to complement these strengths by anchoring high-end research rather than just assembly or fabrication-linked activities — an area India has been keen to expand. 

About KLA Corporation 

KLA is one of the world’s leading suppliers of process control, inspection, and yield management systems used in semiconductor fabrication. Its technologies help chipmakers detect defects, improve manufacturing precision, and enhance production efficiency at nanoscale levels — critical for advanced nodes powering AI, high-performance computing, automotive electronics, and consumer devices. 

Headquartered in the US, KLA serves major global foundries and integrated device manufacturers, providing equipment and software that ensure quality control throughout the wafer manufacturing process. The company has long invested in R&D-heavy operations, making innovation centres central to its global strategy. 

KLA’s Chennai campus signals a shift from India being seen primarily as a chip design destination to becoming a serious player in semiconductor technology development and manufacturing support — an evolution policymakers have long sought to accelerate.