Jacobs Solutions, an American engineering services company, anticipates significant growth in its semiconductor and electronics business in India, driven by increasing interest from both Indian and global companies looking to establish operations in the country. Koti Vadlamudi, Executive Vice-President at Jacobs, stated that the company is currently involved in some of the largest semiconductor projects in India, including the Tata Electronics fab in Dholera, Gujarat.
Vadlamudi expressed optimism about the opportunities in India, noting a healthy project pipeline. He emphasized that while people, deployment, and timing are crucial, the company is very positive about the Indian market and expects the pipeline to expand as India attracts more investment. He believes that the entire ecosystem surrounding semiconductor facilities, and not just the fabs themselves, will fuel the next phase of growth. This includes suppliers of tools and specialty gases, all of whom will require design and construction support. These ecosystem enablers will be critical in supporting India's semiconductor manufacturing vision, and Jacobs is seeing relevant supply chain companies beginning to set up shop, giving them confidence in the long-term sustainability of their platform in India.
Vadlamudi acknowledged that current geopolitical uncertainties could potentially slow down investment decisions. However, he emphasized that the underlying need for growth-driven capacity will ultimately drive companies to invest.
KeyBanc analysts reiterated an Overweight rating on Jacobs Engineering stock, with a price target of $157. Their analysis highlights Jacobs' core end markets in advanced manufacturing, life sciences, and data centers as offering multiyear tailwinds. This, combined with geographic diversity, should enable the company to meet its long-term net service revenue compound annual growth rate target of 6-8%.
In related news, Prime Minister Modi has emphasized India's position as a promising destination for semiconductor manufacturing, further reinforcing the positive outlook for investment in the sector. This aligns with Reliance Jio's announcement that it is preparing to file for its IPO in the first half of 2026, which they anticipate will create significant opportunities for investors. Jacobs has also been selected by the New York State Department of Transportation for infrastructure improvements.
