Upon the termination of the deal between Vedanta and Foxconn, concerns arose globally about India's standing in the semiconductor development industry, with many asserting that progress had backslided due to the difficulty in securing new investments. However, India has addressed these apprehensions with a recent announcement of a substantial investment in the semiconductor industry. AMD, an American Chipmaker, has announced to invest $400 million by 2028 in India. They plan to establish a semiconductor plant in Gujrat and the largest chip design center in Bengaluru, the tech hub.
The breakup of the Vedanta-Foxconn deal was attributed to the unavailability of technology and the inability to find a suitable supplier, as mentioned in their official statement. To bolster the semiconductor plant development in India and address the similar concern as Foxconn and Vedanta, AMD's technology hub in Bengluru will play a crucial role by promoting synergy between technology integration and application, thereby expediting progress.
In the Semicon India Conference 2023, Prime Minister Narendra Modi urged investors to consider investing in India's semiconductor industry, emphasizing the potential advantages of being a "first mover" and availing government subsidies and incentives. AMD's subsequent investment announcement is a result of this appeal.
Other prominent companies in the semiconductor sector, both international and Indian, such as Foxconn, Micron, IBM, Marvell, LAM Research, NXP Semiconductors, ST Microelectronics, Grantwood Technologies, Infineon Technologies, and Applied Materials, are actively seeking opportunities to invest in the Indian Semiconductor Market. Vedanta, despite the previous setback, is also in search of a new technology partner to initiate their semiconductor plant.
The Indian government, during the conference, has offered 50% financial assistance to technology firms for the development of the semiconductor industry in the country. Notably, Indian companies like Tata and HCL, along with other multinational corporations, view this as a significant investment opportunity and are keen on investing in the semiconductor industry in India.
Tata's collaboration with Apple for iPhone production showcases its inclination towards technology product development, signaling potential investments in chipmaking in the future.
With these developments and investments, India's semiconductor industry appears to be on an unstoppable trajectory of growth, and we can look forward to witnessing its progress firsthand.