Applied Materials inks Rs 855-cr, 10-year lease for 8 lakh sft at ITPB Bengaluru

BENGALURU: Applied Materials India, the Indian subsidiary of the US firm that supplies equipment, services and software for the manufacture of semiconductor chips, has signed a large office lease at International Tech Park Bangalore (ITPB), taking up about 8.06 lakh sft at Endeavour (MTB 6). The fresh lease, effective April 1, 2025, runs for 10 years with a total rental outgo estimated at Rs 855 crore, according to registered documents reviewed by TOI via Propstack.

The deal with landlord Information Technology Park Ltd spans ground plus 15 floors. Monthly rentals are fixed at Rs 5.97 crore, or Rs 74 per sft, with a 15% escalation every three years. The company has deposited Rs 35.8 crore. Applied Materials also has a hard option to lease an additional 3 lakh sft in Tower 8 of the ITPB campus, expected to be ready by October 2027.

A company spokesperson did not immediately respond to TOI's request for comment on the development.

The expansion comes as the chip equipment maker doubles down on its India presence. In June, Applied Materials told The Economic Times that it is setting up a semiconductor R&D fab in Bengaluru, with plans to invest $400 million over four years and catalyse over $2 billion in future investments. The Innovation Center for Semiconductor Manufacturing (ICSM) will span 10 acres, create around 1,500 jobs, and serve as a collaborative platform for next-generation chip and display innovations.

The twin moves, a large-scale lease at Whitefield’s ITPB and the R&D fab investment, signal the company’s intent to scale up operations in India, even as Karnataka positions itself as a hub for semiconductor and high-tech investments.