India to Become Powerhouse of Semiconductors, NXP to Invest More than USD 1 Billion R&D

The demand for semiconductors has increased rapidly in the last few years. The central government in India has planned to promote this segment. Recently an agreement related to semiconductors was signed with Singapore. Netherlands company NXP Semiconductors has informed about investing more than one billion dollars (about Rs 8,400 crore) to double its Research and Development (R&D) in the country.

Kurt Sievers, CEO of NXP Semiconductors, said, “Our R&D efforts in the country will be doubled over the next few years. This will entail an investment of more than one billion dollars.” He said that with the automotive sector and other industries company Negotiations are going on. NXP Semiconductors has four design centers in the country. About 3,000 workers work in these. Big companies like AMD and Nvidia have also set up research and design centers in the country. India’s semiconductor market may reach approximately $63 billion by 2026.

Recently, Prime Minister Narendra Modi had said in Semicon conference, “India has about 20 percent share in chip designing talent for this industry and it is increasing. A workforce of engineers, technicians and R&D experts is being prepared in the country. ” In February this year, the government had approved the construction of three semiconductor plants. About 15 billion dollars will be invested in these.

Last week, Adani Group, a big business group, and Israel’s Tower Semiconductor had tied up to set up a semiconductor plant in Maharashtra. About 10 billion dollars will be invested in this project. The government is encouraging international companies to set up manufacturing units in the country. Prime Minister Narendra Modi aims to make the country a major power in semiconductor. The initial capacity of this semiconductor plant to be set up in Maharashtra will be 40,000 wafers. This will be the entry of Adani Group into a new segment. Adani Group has presence in businesses like ports and transmission. Due to tension between America and China, a big change is taking place in the semiconductor segment. India, Singapore and Malaysia are likely to benefit from this.

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