The Indian government recently announced that it will continue to implement plans to develop its chip manufacturing industry and said it is seeking $5 billion in investment to build two chip factories. The government will set up an authorized committee that will be responsible for seeking semiconductor chip manufacturing technology and investment support. The committee will be responsible for negotiating with the group that intends to invest in the project.
The members of the committee are mainly appointed by the government, but it is estimated that the committee members will include semiconductor technology experts, and the committee will report to the government on July 31 this year.
The committee will fully represent the government for India to seek the sources of technical support and financial support needed for the construction of the two chip factories. It will also estimate the amount of assistance and capital input needed for the project and report it to the government.
The Indian government stated that because India lacks local chip manufacturing companies, its chip industry needs to rely on foreign chip factories, which has created a bottleneck in the overall development of India’s domestic electronic systems. The plan to build a chip factory will play a catalytic role in the development of upstream and downstream products. A government spokesperson also said that the project to build a chip factory in this country could indirectly/directly create 30 million jobs for the country by 2020.
However, the Indian government had implemented similar plans in the past, but in the past they failed to attract any chip makers to build factories in their own country. A few years ago, a group of Indian diasporas working in the Silicon Valley of the United States founded Semindia in India. Later, the company transformed itself into a communications equipment manufacturer. Another semiconductor company, Indian Semiconductor Manufacturing Corporation, chose Infineon as a partner to build two chip factories in FabCity Industrial Park in India, which is located near Hyderabad in Andhra Pradesh, India.
However, neither SemIndia nor HSMC have finally built a chip factory in India. The development focus of the FabCity industrial park with government support turned to the solar industry instead of the original semiconductor manufacturing industry. It is unclear whether the government’s new plan will also select the FabCity Industrial Park as the preferred location for the construction of a chip factory.
The members of the committee are mainly appointed by the government, but it is estimated that the committee members will include semiconductor technology experts, and the committee will report to the government on July 31 this year.
The committee will fully represent the government for India to seek the sources of technical support and financial support needed for the construction of the two chip factories. It will also estimate the amount of assistance and capital input needed for the project and report it to the government.
The Indian government stated that because India lacks local chip manufacturing companies, its chip industry needs to rely on foreign chip factories, which has created a bottleneck in the overall development of India’s domestic electronic systems. The plan to build a chip factory will play a catalytic role in the development of upstream and downstream products. A government spokesperson also said that the project to build a chip factory in this country could indirectly/directly create 30 million jobs for the country by 2020.
However, the Indian government had implemented similar plans in the past, but in the past they failed to attract any chip makers to build factories in their own country. A few years ago, a group of Indian diasporas working in the Silicon Valley of the United States founded Semindia in India. Later, the company transformed itself into a communications equipment manufacturer. Another semiconductor company, Indian Semiconductor Manufacturing Corporation, chose Infineon as a partner to build two chip factories in FabCity Industrial Park in India, which is located near Hyderabad in Andhra Pradesh, India.
However, neither SemIndia nor HSMC have finally built a chip factory in India. The development focus of the FabCity industrial park with government support turned to the solar industry instead of the original semiconductor manufacturing industry. It is unclear whether the government’s new plan will also select the FabCity Industrial Park as the preferred location for the construction of a chip factory.
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