India sets steady path toward local semiconductor industry
semiconductor sector. Prabu Raja, president of the US company’s semiconductor products group, said India is on its way to becoming a major hub for semiconductor packaging and assembly. That should create a solid foundation for the industry, setting the stage for the country to move into more challenging — and expensive — semiconductor manufacturing.
“Packaging is the next big inflection that’s going to happen, it’s the right approach,” Raja said in an interview Thursday. Prime Minister Narendra Modi has championed the push into semiconductors, including with a $10 billion fund unveiled nearly two years ago to draw chipmakers. More broadly, he has outlined ambitions to create a robust tech manufacturing sector — dubbed “Make in India” — that has already drawn investments from Apple Inc.
suppliers.Micron Technology Inc., the American memory chip company, is setting up a $2.75 billion semiconductor assembly and testing facility in Gujarat, with financial incentives from the Modi administration. Applied Materials said last month it will invest $400 million over four years to establish a new engineering center in Bangalore. It already runs a research center in the city.
While the company won’t yet assemble chipmaking equipment in India, it will use the new center to work with suppliers and partners on developing new products, Raja said. Modi is leveraging India’s geopolitical clout to become an indispensable partner for American tech ambitions, as Washington clashes with Beijing on a range of issues. India’s standing as a stable democracy and reliable tech center have helped the country’s ambitions.
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