US-based semiconductor firm Applied Materials leases 8 lakh sq ft office space in Bengaluru; the rent will be…

In one of the city’s largest commercial real estate transactions, American semiconductor display equipment maker Applied Materials has leased 8.06 lakh square feet of office space at the International Tech Park Bangalore (ITPB) in Whitefield, Bengaluru.

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The 10-year agreement, beginning April 1, 2025, carries a total outlay of about Rs 855 crore, according to documents accessed by Propstack.

The lease, covering the ground and 15 upper floors of the ITPB-Endeavour (MTB 6) building, is priced at a monthly rent of Rs 5.97 crore, or Rs 74 per square foot, with a 15% escalation every three years.

Applied Materials has provided a security deposit of Rs 35.8 crore. The company has also secured a hard option to take an additional 3 lakh square feet in the under-construction Tower 8, slated for completion by October 2027.

The California-headquartered firm has been steadily expanding its India footprint. In 2022, it acquired nearly 10 acres of land and 2.6 lakh square feet of built-up office space in Whitefield Industrial Area for Rs 338 crore. Its India subsidiary already operates across five office blocks in Export Promotion Industrial Park (EPIP) Phase II.

Karnataka’s Minister for IT and Biotechnology, Priyank Kharge, said on X that the new lease will support Applied Materials’ upcoming Innovation Center for Semiconductor Manufacturing, a first-of-its-kind R&D fab in India, backed by an investment of Rs 4,851 crore and projected to generate about 1,500 jobs.

“From our visit to their US headquarters in 2023 to sustained discussions through 2024 and the cabinet approval earlier this year, it is encouraging to see these efforts take shape on the ground,” Kharge wrote.

“This is a big boost for Karnataka’s semiconductor industry and our fast-growing Global Capability Centre ecosystem,” he added.

Applied Materials has leased 8.06 lakh sq ft of office space at ITPB, Whitefield, translating to ₹855 crore over 10 years. This will house their expanding operations in Bengaluru and support their upcoming Innovation Center for Semiconductor Manufacturing, a first-of-its-kind…

— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) September 3, 2025

The move comes amid India’s push to establish itself as a global semiconductor hub. On September 2, Union Information Technology Minister Ashwini Vaishnaw presented Prime Minister Narendra Modi with India’s first indigenously developed Vikram 32-bit processor at the Semicon India 2025 conference, where Modi described semiconductor chips as the “digital diamond” of the modern era.