Chips are up

Modi


GLOBAL semiconductor giants lined up as Prime Minister Narendra Modi pitched India as a viable chip-making hub. Industry majors such as Foxconn, Micron Technology, Applied Materials, Cadence and AMD were represented by their brass at the Semicon India 2023 conclave, in Gandhinagar, Gujarat.

They all appeared bullish on India as a manufacturing base and a key global market driver as they announced their expansion plans.

In his special address, PM Modi emphasised the role of semiconductors in the day-to-day lives of the people and how India is committed to building the semiconductor manufacturing ecosystem under the Semicon India Programme.

Make for the world

External Affairs Minister S Jaishankar said India’s Semiconductor Mission is not just about meeting domestic requirements, but also about contributing to the global demand for trusted manufacturing. Union Minister of State for Electronics & IT Rajeev Chandrasekhar spoke about how India is making rapid strides towards achieving its semiconductor ambitions under PM Modi’s visionary leadership.

Promising announcements made at the three-day event, which brought together world leaders from industry, academia and research institutions, showed that India’s desire to become a semiconductor hub has got a positive kick-start.

Micron’s new facility

US-based chipmaker Micron revealed its plan to invest $2.7 billion to develop a new assembly and test facility in Gujarat. It will cater to both domestic and international markets and create 5,000 jobs directly and over 15,000 community jobs in the coming years.

Another US-based chipmaker Advanced Micro Devices (AMD) also announced that it will invest $400 million over the next five years and will set up its biggest R&D facility in Bengaluru by the end of this year.

“IT stands for India and Taiwan”, said Young Liu, chairman of Taiwanese semiconductor major Foxconn, quoting PM Modi and assuring that Taiwan will be India’s most trusted and reliable partner in the semiconductor industry.

Vedanta Chairman Anil Agarwal revealed that his company is in talks with a ‘world-class’ technology partner and said it remains committed to establishing a fabrication plant in the country.

Testing and packaging

While India’s primary goal is to establish a fab, setting up testing and packaging units in the country would also be a positive step forward.

Semiconductor packaging holds the potential to become a pivotal moment in India’s chip-making and fabrication efforts, and the country possesses the skilled talent to emerge as a prominent manufacturing centre.

Micron’s decision to set up a packaging unit in India could lead to the entry of five more players, which are part of the packaging ecosystem. Simmtech, a supplier of printed circuit boards and Air Liquide, provider of high-purity industrial gases for chip manufacturing, are reportedly in talks with the Government to commence operations in India.

Disco, one of the world’s leading makers of tools for cutting and grinding silicon wafers, is also looking to establish a base in the country. There is no semiconductor company that does not have an R&D centre in India.

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