Global Semiconductor Giants Rally Behind India for Manufacturing Expansion

Prominent global semiconductor companies, including Foxconn, Micron Technology, Applied Materials, SEMI, Cadence, and AMD, are congregating at SemiconIndia 2023, held from July 28-30 in Gandhinagar, Gujarat. These industry leaders are capitalizing on India’s potential to establish itself as a reliable supply chain hub amid a VUCA world. The event highlights India’s semiconductor strategy, aiming to transform the nation into a global center for semiconductor design, manufacturing, and technology development. Several companies are announcing plans to manufacture or expand operations in India.

Prime Minister Narendra Modi inaugurated the event, acknowledging the transformation from questioning investment in India’s semiconductor industry to embracing it. He emphasized India’s role as a trusted global partner due to its stable governance, growing technology sector, and a substantial talent pool.

Foxconn’s Chairman, Young Liu, praised India’s prospects, drawing parallels with the Taiwanese semiconductor industry’s ‘buffalo spirit’ of dedicated hard work. Ajit Manocha, CEO of SEMI, highlighted the alignment of geopolitics, domestic politics, and private capacities for India to emerge as a significant semiconductor producer. Micron Technology recently revealed plans to invest up to $825 million in a new assembly and test facility in Gujarat. Sanjay Mehrotra, CEO of Micron Technology, expressed pride in the facility’s job creation potential.

Mark Papermaster, CTO of AMD, announced a $400 million investment over five years, establishing a large design center in Bengaluru. The Applied Materials and Cadence leadership also affirmed India’s prominence in the semiconductor realm.

The automotive industry’s reliance on chips has grown exponentially due to trends like electrification, connectivity, autonomy, and vehicle safety. After facing a global chip shortage driven by the pandemic, vehicle manufacturers are securing chip supplies for uninterrupted production.

With India emerging as a favorable semiconductor hub, global manufacturers aim to expand their manufacturing footprint. India’s attractiveness lies in its advantageous business environment, making it an appealing destination for chip manufacturing ventures.

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