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India makes $10bn bid to grow local semiconductor industry to serve, and challenge, the world

(2021/12/16)


India has unveiled a $10bn subsidy scheme designed to lure semiconductor manufacturers to its shores.

The new “India Semiconductor Mission” (ISM) targets entities seeking to establish “Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP / OSAT), Semiconductor Design.”

The Rs.76000 crore ($9.96bn) Mission offers construction subsidies for organisations willing to build the above in India. Fabs and design initiatives can receive up to 50 percent subsidies for their activities. Other semiconductor industries will receive smaller rebates.

[1]

India’s subsidies may not buy it a lot: Samsung is spending [2]$17bn on a single fab in Texas , Intel has commenced a $20b expansion of its Arizona facilities and TSMC has [3]flagged capital expenditure approaching $100bn to expand its manufacturing capacity.

[4]

The scheme nonetheless envisages attracting at least two greenfield semiconductor Fabs and two display fabs in the country, 15 semiconductor packaging facilities, and assistance to 100 domestic semiconductor design companies, of which 20 are expected to achieve annual revenue of $200m in the next five years.

Meanwhile, in Malaysia, Intel might be up to something. Or not Malaysia this week also made a bid for its slice of the semiconductor market with the chief minister of the state of Penang, Chow Kon Yeow, [5]announcing on Twitter that Intel would spend $7bn on a semiconductor packaging facility in his jurisdiction.

Yeow linked to one of many stories that media had received an invitation had been issued to a December 15th event at which Intel CEO Pat Gelsinger would appear in Malaysia to announce the facility.

The Register checked with journos we know in Malaysia – none had received the invitation, - and Intel told us no event or announcement was planned in Malaysia. Not has Intel made any announcement at the time of writing.

Again, those targets seem brave as India does not currently possess an enormous pool of silicon design talent and recent domestic silicon designs include [6]modest RISC-V processors built on a 180-nanometre process. While India has shown it can quickly grow services industries, and has a renowned technical education sector, there’s a lot of work required to become a player.

[7]Oppo joins the 'we designed our own chips' club, announces MariSilicon X

[8]India reveals home-grown server that won't worry the leading edge

[9]Indian government committee slams 'gross misuse' of internet shutdowns – even in Kashmir

Indian prime minister Narendra Modi said the new scheme furthers the nation’s “Aatmanirbhar Bharat” self-sufficiency plan and will “position India as global hub for electronics manufacturing with semiconductors as the foundational building block.” ®

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[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YbrH-GZ2zFpkonPxHQIWEwAAAAU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[2] https://www.theregister.com/2021/09/07/samsung_intel_chip_fab/

[3] https://www.theregister.com/2021/05/04/tsmc_arizona_fabs/

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YbrH-GZ2zFpkonPxHQIWEwAAAAU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[5] https://twitter.com/chowkonyeow/status/1470564169586188292

[6] https://www.theregister.com/2020/08/19/india_microprocessor_challenge_risc_v/

[7] https://www.theregister.com/2021/12/15/oppo_marisilicon_x/

[8] https://www.theregister.com/2021/12/06/india_reveals_homegrown_rudra_server/

[9] https://www.theregister.com/2021/12/07/suspension_of_telecom_services_report_india/

[10] https://whitepapers.theregister.com/



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