INTEL plans to set up a Semiconductor Manufacturing facility in India

The shortage of Semiconductor Chips globally has increased the competition between companies and many are racing in it, working to accelerate silicon production. The US-based Semiconductor giant and one of the world’s top tech companies, INTEL is planning to set up a Semiconductor Manufacturing facility in India. This announcement came after the Union Cabinet of India approved an incentive scheme of Rs 76,000-crore for the semiconductor and display manufacturing ecosystem in India that will encourage research and innovation, boost manufacturing and strengthen the ‘Aatmanirbhar Bharat‘ program.

According to sources, the company is likely to apply for incentives under the new scheme and the new unit would involve the development and fabrication of test chips on Intel 18A, which is among the newest technologies developed by INTEL.  Randhir Thakur, a senior vice-president at Intel Corp., and also president of Intel Foundry Services, tweeted, ” Congratulations to Ashwini Vaishnav, Rajeev Chandrasekhar, Ministry of Electronics and IT, for promoting semiconductor design and manufacturing for India as a hub of electronics and semiconductors. Glad to see a plan laid out for all aspects of the supply chain: talent, design, manufacturing, test, packaging & logistics.” The Minister for Electronics and Information Technology (MeitY) Ashwini Vaishnaw responded to Randhir Thakur’s tweet and welcomed Intel to India by tweeting, “Intel – welcome to India.”

These comments on social media are being perceived as an expression of interest in Intel coming to India but the company has not yet confirmed any immediate investment plans for the manufacturing facility in India and has not responded to queries about whether the new plant would work on 18A chipsets or not. An official statement about the Semiconductor manufacturing facility in India is yet to come out from Intel.  

Setting up a semiconductor fab is the most complex manufacturing process which takes effort from both the government and companies that are interested and looking to take it forward. The Modi government is in talks with many companies and has arranged attractive incentive support for those companies that are engaged in display fabs, sensor fabs, compound semiconductors, silicon photonics, silicon semiconductor fabs, semiconductor packaging, and semiconductor design. The incentive scheme will involve setting up over 20 manufacturing units over 6 years and it also includes a plan to train semiconductor engineers. The government’s move to make India a global hub for hi-tech production will bring many big tech companies to India for setting the manufacturing plant, strengthening the ‘ self-reliant India ‘ campaign. Companies like Tata Group and Vedanta group are also in lead to invest and promote semiconductor manufacturing in India. The Government’s semiconductor policy and the package will bring more global players in this semiconductor space and companies of significant interest in all sectors of silicon and compound semiconductors, testing and packaging and design.