Asif Aydinli
Tata, one of India’s largest industrial conglomerates, has begun construction of a semiconductor manufacturing plant in the state of Assam, the ministry of electronics and information technology announced. The project, worth 270 billion rupees ($3.2 billion), marks a significant step in the development of the semiconductor industry in India.
The new factory is expected to produce up to 48.3 million chips per day, strengthening India’s position in the global microelectronics market. Minister of Electronics and Information Technology Ashwini Vaishnau said the facility will be a hub for advanced semiconductor assembly technologies such as wire bond, flip chip and I-SIP. These technologies play a key role in the automotive industry, particularly in the production of electric vehicles, as well as in communications and network infrastructure. Vaishnau highlighted the potential for these technologies to spur innovation in the region and drive economic growth.
The Indian government has recognized the strategic importance of the semiconductor sector and is focused on developing semiconductor manufacturing capabilities. By offering fiscal incentives, tax breaks, and streamlined regulatory processes, India aims to attract global semiconductor giants to set up operations in the country. In June 2023, the state of Gujarat signed a roughly $3 billion deal with US company Micron Technology to build a factory that will begin production in December 2024. Additionally, Taiwanese company Foxconn has applied to set up microchip manufacturing in India in the second half of 2023. These efforts are part of India’s broader strategy to reduce its reliance on semiconductor imports and position itself as a major player in the global supply chain.
Meanwhile, China maintains a leading position in global semiconductor manufacturing. Companies such as SMIC, Huahong Semiconductor, and Yangtze Memory Technology Co., Ltd. (YMTC) play key roles in the global industry. Government support and significant investments enable China to develop advanced technologies and increase production capacity. However, amid geopolitical tensions and trade disputes, China is seeking greater independence from Western technology. China is stepping up efforts to achieve technological self-sufficiency by investing heavily in research and development and expanding domestic manufacturing capabilities.
The semiconductor industry is at the heart of the global technology economy, and countries around the world are recognizing its vital role. The COVID-19 pandemic has highlighted the fragility of global supply chains, prompting countries to reassess their reliance on foreign semiconductor supplies. As part of this shift, several European countries, including Germany, are looking to reduce their reliance on Asian microelectronics manufacturers. The European Union has launched an initiative to strengthen its semiconductor industry with the goal of doubling its global market share by 2030.
These developments highlight the dynamic and rapid evolution of the semiconductor industry. The global semiconductor market is becoming increasingly competitive as countries such as India and China expand their capabilities. This competition is expected to drive innovation, improve supply chain resilience, and potentially lead to lower costs for consumers.
The race for semiconductors is not just about economic gain, but also about strategic positioning in the technology sector. As countries invest in the semiconductor industry, they are also investing in their own futures, aiming to lead the next wave of technological advancements that will shape the world.
News.AZ
