BENGALURU (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)