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India plans to produce the first batch of domestically produced chips within 2024

India plans to produce the first batch of domestically produced chips within 2024

Author:netwing    Time:2023-07-17    Browse:

According to foreign media reports, Indian officials have stated that India's first semiconductor assembly plant will break ground next month and begin producing the country's first domestically produced chips by the end of 2024.
According to the Financial Times, India plans to produce the first batch of domestically produced chips within 2024.
According to reports, Ashwini Vaishnaw, the Indian Ministry of Electronics and Information Technology, said that American company Micron is establishing a chip assembly and testing factory in Gujarat, which will begin construction in August and cost $2.75 billion, including government support.
"Our goal is to produce the first batch of products from this factory within 18 months, which is December 2024," Vaishnaw said. The Indian semiconductor delegation led by the Indian government is also doing "extensive work" to gain support from other supply chain partners, including chemical, gas, and manufacturing equipment suppliers, as well as companies interested in establishing silicon wafer manufacturing plants.
The report states that the Indian government is working hard to establish the ability to produce smartphones, batteries, electric vehicles, and other electronic products, and its technology manufacturing industry lags behind East Asian export-oriented economies.
The Indian government in New Delhi recently reopened bids for a $10 billion subsidy program for chip manufacturers, after three initial applicants, including a consortium composed of industrial group Vedanta and Foxconn, were unable to receive subsidies.
When restarting the application process, India adjusted the specifications to seek proposals for producing mature nodes of 40 nanometers or more, which is more lenient than the previously sought more expensive 28 nanometer chip process.
Extended reading: self-reliance! India will reopen applications for a billion dollar chip subsidy program
Vaishnaw stated that Indian officials are currently in negotiations with more than ten applicants. "Among the more than 14 companies we discussed, two are very excellent and should be able to succeed," he declined to disclose details.
Some critics of this ambitious chip manufacturing plan believe that the Indian government's attempt to replicate the entire high demand industry has set too high a threshold. They suggest that India should focus on specific parts of the value chain, where it already possesses validated expertise, including design.
Vaishnaw refuted this judgment, emphasizing that India has over 50000 semiconductor designers and that "almost all the complex chips in the world" have already been designed in India. "This ecosystem already exists," he added. "Acquiring factories is the next step, which is also the focus of our attention. Meiguang's factory establishment is a very big victory."
Extended reading: Micron's first factory investment in India may reach 2.75 billion US dollars, with 70% subsidy from the Indian government
According to reports, the United States is strengthening cooperation with India in the field of chips. In addition to Micron's factory, chip equipment manufacturer Applied Materials has announced plans to invest $400 million to establish a new engineering center in Bangalore.

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