India is apparently in talks with major chip makers Intel, GlobalFoundries, and even TSMC (Taiwan Semiconductor Manufacturing Company) over possibly setting up advanced local semiconductor plants in the region.
According to an ETTelecom report, the move from India arrives as it seeks to bring more high tech manufacturing into the nation. Just last year, Indian Prime Minister Narendra Modi’s government announced that it is setting up a 10 billion US Dollar incentive plan. This large sum would seek to cover around half of any chipmakers’ costs. To put things simply, the fund was an attempt in attracting display and semiconductor manufacturers to set up a plant in the country.
Through these incentives, the Indian government aims to rival its neighbor, China, and also become a notable figure in the electronics production segment. According to Rajeev Chandrasekhar, a former Intel engineer, “Most of the pitches to these big companies, I’m making myself. We’re meeting the CEOs, talking to them, making presentations.” But unfortunately, the attempts at attracting any major chip giant are still questionable since firms like Samsung and TSMC invest tens of billions of dollars every year to expand their production capacity.
Furthermore, semiconductor production also requires high demand from the region the plants are set up. This includes logistics, water, and energy supply. At the moment, the venture between Vedanta Group and Foxconn Technology Group has shown interest in setting up semiconductor foundries within the nation. Although, Intel and TSMC have yet to show a similar level of commitment as of right now, but negotiations are still underway.
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