India’s Semiconductor Ambitions Soar: Three New Chip Fabrication Units on the Horizon

India is poised to welcome three new semiconductor chip fabrication units in the coming months, drawing investments ranging from $8 billion to $12 billion, as announced by Ashwini Vaishnaw, the Minister for Electronics and Information Technology, according to reports from the media. This development follows the inauguration of AMD Technostar R&D campus, the largest global design center by semiconductor giant AMD, in Bengaluru on November 28. AMD’s move marks a significant expansion of its research and engineering operations in India.

India to set up Three New Chip Fabrication Units

During the inauguration of the Advanced Micro Devices (AMD) design center, in Bengaluru, the Union minister mentioned that within a month they will acquire three units that will manufacture advanced chip technologies within the country.

In Gujarat, the groundbreaking ceremony for India’s chip packaging facility by Micron took place in September. The construction of this semiconductor plant, which was unveiled in June and initiated in September 2023 has progressed swiftly. This progress has instilled confidence in India’s semiconductor mission as stated by the Union minister.

Referring to an agreement the Gujarat government signed a Memorandum of Understanding (MoU) with Micron, a US-based computer storage chip manufacturer back in June. The objective was to establish a $2.75 billion semiconductor assembly and testing facility in Sanand located in Gujarats Ahmedabad district. This facility is poised to become India’s semiconductor manufacturing unit. Vaishnaw further mentioned that initial chip production is expected within 18 months.

It is important to note that there is a transformation occurring within the semiconductor industry due to countries like TSMC (Taiwan Semiconductor Manufacturing Company) South Korea and Intel. The COVID-19 pandemic highlighted vulnerabilities, within the supply chain as various industries were impacted by shutdowns and disruptions—smartphones being one of them. This emphasizes the requirement to broaden the range of suppliers, for elements, in the semiconductor sector.