India has received investment pledges of as much as $12 billion from global and local investors within months of launching it’s new semiconductor policy, marking an acceleration in its efforts to become a chip-making nation.
The commitments come from companies including those producing chip equipment, materials and chemicals manufacturers, Technology Minister Ashwini Vaishnaw said at the country’s top chip industry event in New Delhi Thursday. The interest comes after India in July announced a fresh $13.4 billion semiconductor fund, stepping up efforts to build a domestic chip industry. It seeks to boost a previous $10 billion subsidy program that’s helped the likes of the Tata Group and Micron Technology Inc. to set up fabrication and assembly plants in the South Asian country.
Vaishnaw did not disclose company names but said the investments will be made over the next two to three years.
Some of the companies approved under the previous chip policy, such as Micron and Murugappa Group’s chip unit, are already in commercial production. “So far whatever production is there is already booked and capacity, which is getting created, is already booked,” said Vaishnaw.
Earlier Thursday, Prime Minister Narendra Modi launched a charm offensive for global investors at the chip conference that’s drawn commitments from US firms Applied Materials Inc. and Lam Research Corp. for billions of dollars in outlays.
Marking India’s ambitious bid to win a seat at the global chip-making table, Modi touted the country’s vast pool of engineering graduates and semiconductor-friendly policies as assets international companies should take advantage of.
Separately, Tata Group’s electronic and chip unit signed five accords across the semiconductor supply chain during the event. These include a partnership with Nexperia BV that spans semiconductor wafer manufactudring, assembly and test for its fabrication plant in western Gujarat state as well as its assembly facility in Assam.
Tata Electronics also announced a collaboration with Fujifilm Corp. for local production of critical raw materials and developing a supply chain around the Dholera unit in Gujarat.
“The question of whether we can make chips in India has changed to how fast and how deep can we build the semiconductor ecosystem in Inia. The answer is: deeper than anyone would have thought and sooner than anyone could have predicted,” said Tata Electronics’ Chief Executive Officer Randhir Thakur.
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