Global Tech Giants Back India’s Deep Tech Push with $2.5B Alliance

NEW DELHI, India – February 17, 2026 – India's ambition to become a global deep technology powerhouse received a monumental boost today as the India Deep Tech Alliance (IDTA) announced the addition of five industry heavyweights: Applied Materials, CG Power, Lam Research, Larsen & Toubro, and Micron Technology. This strategic expansion builds on the momentum from NVIDIA's earlier entry as a founding member, solidifying a formidable coalition aimed at transforming India's innovation landscape.

The alliance now commands venture capital commitments exceeding $2.5 billion, earmarked for Indian deep tech startups over the next five years. This includes a dedicated $1 billion fund to be invested in Indian artificial intelligence startups over the next three years, signaling a concentrated effort to dominate a critical sector of the future economy.

From Ambition to Execution

The inclusion of these global and Indian giants marks a significant shift from strategic planning to tangible action. The IDTA, an industry-led consortium chaired by Celesta Capital's India Managing Partner Arun Kumar, is designed to be more than just a capital pool. It serves as a comprehensive ecosystem, integrating expertise across semiconductors, AI, advanced manufacturing, power systems, and infrastructure engineering.

"The entry of Applied Materials, CG Power, Lam Research, L&T, and Micron marks a pivotal step in moving India's deep tech ambition from intent to execution," said Arun Kumar. "This coalition brings unmatched depth... IDTA is designed to align capital, technology, and policy so that India can emerge not just as a participant, but as a trusted global hub for next-generation technologies."

This sentiment is echoed by the new partners. Om Nalamasu, CTO of Applied Materials, emphasized the importance of "sustained, ecosystem-level collaboration," while Anand Ramamoorthy, Managing Director of Micron India, highlighted the goal of advancing "globally competitive deep tech from India."

The alliance's model focuses on providing startups with the critical support needed to navigate the treacherous "lab-to-fab" transition. This includes manufacturing and scale-up guidance, access to expert resources, mentorship, and collaborative research opportunities—assets that venture capital alone cannot provide. Since its founding in September 2025, IDTA members have already demonstrated their commitment by deploying $110 million into over 50 startups, laying the groundwork for this next phase of accelerated growth.

Beyond Capital: A Blueprint for Building an Ecosystem

The true power of the expanded IDTA lies in the on-the-ground commitment and existing investments of its new corporate partners, which provide a concrete blueprint for ecosystem development. These are not passive members; they are actively building the infrastructure that will underpin India's deep tech future.

Micron Technology is on the cusp of beginning commercial production at its new Assembly, Test, Mark, and Package (ATMP) facility in Sanand, Gujarat. This facility, a cornerstone of India’s semiconductor mission, represents a combined investment of up to $2.75 billion with government support and will produce not only DRAM and NAND but also the high-bandwidth memory (HBM) crucial for AI computing.

Similarly, Applied Materials is investing $400 million in a new collaborative engineering center in Bengaluru, which is expected to support over $2 billion in planned investments and create thousands of high-skilled jobs. Lam Research is also making substantial inroads, with plans for an advanced R&D lab and a semiconductor silicon component manufacturing facility in Karnataka, representing a combined investment of over ₹15,000 crore (approx. $1.8 billion USD).

These investments provide IDTA-backed startups with unparalleled access to physical infrastructure and deep domain expertise. "Semiconductor manufacturing excellence depends on deep collaboration," noted Kevin Chen, Head of Lam Capital & Corporate Development at Lam Research, underscoring the alliance's role in helping innovators navigate "manufacturability and global ecosystem linkages." Indian industrial giants like Larsen & Toubro and CG Power bring further depth in engineering and power systems, crucial for building resilient, large-scale manufacturing value chains.

Catalyzing a National Vision

The IDTA's private-sector initiative operates in powerful synergy with the Indian government's ambitious national strategy. The alliance directly complements the government’s Research, Development & Innovation (RDI) Scheme, a landmark policy approved in 2025 with an outlay of ₹1 lakh crore (approximately $12 billion USD) over six years.

The RDI Scheme is designed to de-risk private investment in deep tech by providing concessional funding and equity infusion for startups, particularly those bridging the mid-to-late stages of technology readiness. By focusing on areas like AI, quantum computing, and biotech, the government aims to shift the national focus from "Make in India" to a more ambitious "Invent in India," fostering indigenous intellectual property.

This public-private convergence is critical. While India's deep tech sector is the world's sixth-largest with over 3,600 startups, it has historically faced significant hurdles. Long gestation periods, high capital requirements, and a shortage of specialized talent have created funding gaps that traditional VC models are often hesitant to fill. The combined force of the RDI fund and IDTA's targeted capital and mentorship is designed to plug these gaps and build a more resilient funding pipeline.

The Road Ahead: Navigating Challenges to Seize Opportunity

Despite the immense momentum, the path to becoming a global deep tech leader is not without its challenges. India's cumulative deep tech investment over the past decade, while growing, still trails far behind global leaders like the United States and China. Industry analysts point to a persistent "value trap," where much of the high-value IP for technologies manufactured in India is owned by foreign entities, limiting the economic upside captured domestically.

Furthermore, attracting and retaining top-tier research talent remains a critical battleground, with startups often competing against the deep pockets of multinational corporations. The IDTA's structure, however, is a direct response to these issues. By embedding startups within a network of corporate giants, it creates a unique environment for talent development and knowledge transfer. The alliance's focus on fostering co-development opportunities and providing input on national policy aims to create a more favorable environment for IP creation and commercialization within India.

The dedicated $1 billion AI fund is a prime example of this targeted approach. It provides "concentrated firepower," as Kumar described it, to help Indian AI companies scale rapidly and compete on a global stage. As corporate partners like Micron begin producing essential AI hardware on Indian soil, the potential for a vertically integrated and self-reliant AI ecosystem grows exponentially.

This convergence of private capital, corporate expertise, and government policy marks a concerted effort to build a self-reliant and globally competitive ecosystem. The alliance is not merely funding companies; it is building the foundational pillars of infrastructure, talent, and market access required to transform India's deep tech landscape from a field of potential into a sustainable powerhouse of innovation.