Several Chinese electronic component makers are in talks with Indian companies to set up joint ventures, in which the Indian companies will control a majority stake. This is a significant development, as it would allow Chinese companies to access the Indian market without having to set up their own manufacturing facilities.
The country’s first semiconductor assembly plant will break ground next month and start producing the country’s first batch of domestic chips by the end of 2024. India’s Electronics and Information Technology Minister Ashwini Vaishnaw said Micron is building a chip assembly and testing plant in Gujarat state, a $2.75 billion project that will start construction in August, including government support.
“We are aiming to produce the first batch from this factory within 18 months, which is December 2024,” Vaishnaw said.
The Indian government is also working to attract other semiconductor companies to set up shop in India. The government has launched a number of initiatives to make India a more attractive destination for semiconductor manufacturing, including the PLI program and the setting up of a semiconductor mission.
The development of the Indian semiconductor industry is seen as a key priority for the Indian government. The government believes that the semiconductor industry has the potential to create significant jobs and boost the country’s economic growth.
The Indian semiconductor market is expected to grow rapidly in the coming years. This growth is being driven by a number of factors, including the increasing demand for electronic products in India and the government’s efforts to promote local manufacturing.
The development of the Indian semiconductor industry is a win-win for both China and India. China will be able to access the Indian market without having to set up its own manufacturing facilities, while India will be able to develop its own semiconductor industry and create jobs.
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