India: At the Semiconlndia conference in Modi’s home state of Gujarat, US chipmaker Advanced Micro Devices revealed plans to invest $400 million in the country over the next five years, including the construction of its largest design centre in Bengaluru’s tech capital.

The investment bodes well for the event, which is the prime minister’s latest attempt to get investors into the semiconductor business after his previous incentive bid failed. Foxconn pulled out of a $19.5 billion chip joint venture with Vedanta a few weeks ago, claiming that “the project was not moving fast enough.” Foxconn has since opted to strike out on its own.

Two additional consortiums, one of which included Israel’s Tower Semiconductor, had declared plans to invest $3 billion each, but the plans have since stopped. India is presently reopening applications for a $10 billion incentive programme.

The majority of global chip production is currently concentrated in a few key centers, with Taiwan being one of the prominent players. Prime Minister Narendra Modi’s statement on India’s ambitions in the semiconductor industry received support from Foxconn. Young Liu, the chairman of Foxconn, expressed his endorsement during the event, acknowledging the Indian government’s strong determination, which fills him with optimism for India’s future prospects.

Despite entering the semiconductor market relatively later, India has set high aspirations, and it projects its local chip market to reach a value of $80 billion by 2028. This figure represents a significant growth, nearly four times the size of the current $23 billion market.

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