Chief Executives Praise India’s Technology Sector at SemiconIndia Event
Top semiconductor firms’ CEOs expressed admiration for India’s technology sector during an event attended by Prime Minister Narendra Modi. As the world’s fifth-largest economy, India aims to establish itself as a leading player in the global chip industry. Micron and Cadence, along with senior executives from Applied Materials and AMD, spoke about their investments in India’s chip market. Ajit Manocha, the CEO of SEMI, a US-based industry body, also attended the event. Manocha stated that India is now favorably positioned to become a significant player in semiconductor production.
The event, featuring prominent chip companies, highlights India’s ambitions to join the ranks of major semiconductor hubs such as the US, Taiwan, and South Korea.
India’s Chip Strategy
India’s chip strategy consists of two main parts: attracting foreign firms to invest and set up operations in the country, and forming alliances with other key semiconductor nations like the US. The Indian government has implemented supportive policies for the semiconductor sector, including a $10 billion incentive plan for the industry, which is open to foreign companies. Prime Minister Modi’s recent visit to the US emphasized India’s commitment to collaborate with America on semiconductors and other areas. The CEOs of American chip firms at SemiconIndia spoke about their investments in India and announced new ones, highlighting India’s focus on attracting foreign companies. AMD plans to invest approximately $400 million in India over the next five years, including the establishment of a new campus in Bangalore that will serve as the company’s largest design center. Micron also announced plans to set up a semiconductor assembly and testing facility in Gujarat, with an investment of up to $825 million.
Foxconn’s India Setback
Young Liu, chairman of Foxconn, attended the event. Foxconn, known for assembling Apple’s iPhones, has been making efforts to enter the semiconductor industry. Last year, Foxconn partnered with Indian conglomerate Vedanta to establish a semiconductor and display production plant in India as part of a $19.5 billion joint venture. However, Foxconn recently withdrew from the venture, dealing a setback to both the company and India’s ambitions. Despite this setback, Liu expressed Foxconn’s ambition to invest $2 billion in India over the next five years. Vedanta Group Chair Anil Agarwal stated that the company is in the process of forming partnerships with world-class technology firms in the semiconductor sector.
India’s Challenges
The high-profile event with CEOs from major chip companies showcased India’s potential in the semiconductor industry. However, the country faces challenges in certain segments. While India could be attractive for packaging and testing of semiconductors, it lacks major Taiwanese firms in this segment due to inconsistent policies and high import tariffs. In terms of chip manufacturing, there haven’t been strong technology partnerships for companies looking to establish manufacturing facilities in India. Despite these challenges, analysts remain optimistic about India’s chip market, citing its large domestic market and incentives. Prime Minister Modi highlighted India’s skilled engineers and designers as a strength, stating that those who want to be part of a vibrant and unified market have faith in India.
