Global Players Foresee Growth in Indian Semiconductor Industry?
In order to attract semiconductor and display fabs to India, the Indian government initiated a semiconductor programme of Rs 76,000 crore.
The worldwide sale of semiconductors may reduce by 4.1 percent in 2023, says a report by World Semiconductor Trade Statistics Organization (WSTS).
According to the report, the worldwide sale in 2022 was $580.1 billion, which was up from the sales of 2021. In 2023, global sales are projected to touch $556.5 billion, with the key factor being the 21.2 percent decline in the sales recorded by Chinese products.
In order to attract semiconductor and display fabs to India, the Indian government initiated a semiconductor programme of Rs 76,000 crore. In the first round, which ended last February, the government received proposals for three semiconductor fabs and two display fabs. In response to industry concerns, the government changed the plan in September 2022 to provide a flat 50 percent incentive to all certified fabs.
- Tata Group in 2020 incorporated TEPL, which is a Greenfield venture with expertise in manufacturing precision components. The Tata’s plan to invest $90 billion in the semiconductor industry across the group companies over the next five years. It plans to foray into advanced chip manufacturing, popularly known as fabs, in course of time.
- Foxconn and Vedanata entered into a partnership for a semiconductor fabricating plant in Dholera, Gujarat, which is likely to become operational next year. While the Foxconn-Vedanta project will see about $19.5 billion dollars being pumped into it, several other chip-making global leaders are also eyeing to set up shop in India.
- Taiwan’s TSMC has also announced a plan to establish a chip-fabricating factory in India, towards which it is in talks with government agencies to check the plan’s feasibility. Speculations are rife about a possible tie-up between Tata-TSMC, which already has a big office in Bengaluru. Reportedly, Singapore-based IGSS Ventures and ISMC are also exploring similar options.
- Renesas Electronics has forged a strategic partnership with Tata Motors for designing, developing and coming up with semiconductor solutions. Now, they are looking to establish their own fabs in India for making and exporting silicon chips for EVs to their global customers. It’s not just Asian countries that are eyeing an India foray. Companies like AMD and Intel are also looking to set up their factories in the country, through their partners.
- Micron Technology has also planned to invest more than $41 million on a production plant in Hyderabad. The current investment forecast is around $25 billion, according to Rajeev Chandrasekhar, Minister of State for Electronics and Technology.
