BENGALURU, Feb 12 (Reuters) - U.S.-based chip toolmaker

company Lam Research ( LRCX ) said it will invest over 100

billion rupees ($1.2 billion) in the next few years in India's

southern Karnataka state, the latest boost to the nation's plans

to bolster its semiconductor ecosystem.

During an 'Invest Karnataka' event on Tuesday, Lam Research ( LRCX )

said it has signed a memorandum of understanding (MoU) with the

Karnataka Industrial Area Development Board (KIADB) for the

investment.

Prime Minister Narendra Modi's government has been trying to

grow India's nascent chipmaking industry with initiatives

including a $10 billion incentive package. India expects its

semiconductor market to be worth $63 billion by 2026.

Global chip firms are investing and setting up facilities in

India as it races to build up the semiconductor industry and

compete with major hubs such as Taiwan.

In a post on X, India's IT minister said Lam Research's ( LRCX )

investment was "one more milestone" in the country's

semiconductor journey and a "big vote of confidence" in the

government's semiconductor vision.

Fremont, California-based Lam Research ( LRCX ) develops tools

essential for semiconductor manufacturing. Its products are

primarily used in a wide range of wafer-processing and wiring of

semiconductor devices.

Karnataka includes the IT hub of Bengaluru and is among the

top contributors to India's economy and a major exporter of

software, IT services and manufactured goods.

($1 = 86.3690 Indian rupees)