India received investment commitments worth $12 billion from global and domestic investors within months of introducing its new semiconductor policy, signalling a faster push to build a domestic chip manufacturing ecosystem.
The pledges span companies involved in semiconductor equipment, materials and chemicals, Technology Minister Ashwini Vaishnaw said on Thursday at the country’s leading semiconductor industry event in New Delhi.
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 companies such as the Tata Group and Micron Technology Inc. set up fabrication and assembly plants in the South Asian country.
Vaishnaw didn’t disclose company names but said the investments will be made over the next two to three years.
Here is a look at the list of companies that have shown interest in investing in India:
- Chip equipment maker Applied Materials Inc. said at the event that it will invest $5 billion in India over the next decade,
- Its competitor, Lam Research Corp., said it plans to spend about $1 billion on a local manufacturing facility.
- Meanwhile, Micron will test and assemble hundreds of millions of chips in India in 2027 after starting output from its local plant this year, Chief Executive Officer Sanjay Mehrotra said.
- 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 manufacturing, 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. to produce critical raw materials locally and to develop 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 we can build the semiconductor ecosystem in India. The answer is: deeper than anyone would have thought and sooner than anyone could have predicted,” Tata Electronics’ Chief Executive Officer Randhir Thakur said.
Micron and Murugappa Group are already in production
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,” Vaishnaw said.
Earlier Thursday, Prime Minister Narendra Modi launched a charm offensive for global investors at the chip conference, touting the country’s vast pool of engineering graduates and semiconductor-friendly policies.