India is going to break ground next month on its first semiconductor assembly factory, according to the Financial Times. According to the newspaper, this factory will begin pumping out the country’s first domestically-manufactured chips by the end of next year.
The factory is being built by Micron, a US semiconductor company. The factory will cost $2.75 billion but it’s also receiving support from the Indian government. Ashwini Vaishnaw, India’s minister of electronics and IT said that the factory will be ready by December 2024.
Speaking to the FT, he was noted as saying:
“This is the fastest for any country to set up a new industry. I’m not just saying a new company — this is a new industry for the country. Eighteen months is when we have targeted for production to come out of this factory — that is, December of ‘24.”
With the United States and China squabbling over semiconductors, it’s giving India a chance to attract business. Prime Minister Narendra Modi’s India Semiconductor Mission is attempting to draw in business all through the supply chain including suppliers of chemicals, gases, manufacturing equipment, and chip makers.
Discussing the applications India has received from companies in the supply chain, Vaishnaw said that the government was in talks with around 14 companies and that two of them are “very good” and “should be able to make it”.
By setting up a factory in India, Micron will be helping to diversify the manufacture of semiconductors. Just a handful of countries, including Japan, China, and the US dominate in semiconductors but because the technology is so important, more countries are trying to boost their capacity.
One of the big companies to announce expansions in Europe and the Middle East is Intel. The company has agreed to build a factory in Italy and Germany and expand its presence in Israel.
Source: Financial Times