Semiconductor Enterprises from US and Taiwan, China Flocking to Indian Market

According to Business Korea, the semiconductor industry and foreign media reported on July 31st that American semiconductor design expert AMD has recently made a major decision to invest approximately $400 million to establish a new joint venture in Bangalore, India. AMD, headquartered in Santa Clara, Silicon Valley, is renowned for its diverse semiconductor design capabilities and is currently venturing to establish a larger semiconductor design center in India.
Before AMD, several American companies, including Micron Technology, the world’s third largest memory manufacturer, and equipment expert Applied Materials (AMAT), have also decided to make new investments in India. Micron Technology is investing $825 million to build DRAM and NAND flash memory test facilities in Gujarat, India, while AMAT plans to invest $400 million to build an engineering center in Bangalore.
Foxconn, Apple’s main partner in Taiwan, China, China, is making significant progress in India. It plans to invest $2 billion in five years to build a semiconductor factory. This is a separate new investment plan beyond the recently postponed joint investment plan between Foxconn and India’s Vedanta Group, which amounts to 19.5 billion US dollars.
In order to attract foreign semiconductor companies to invest in India, the Indian government has formulated a huge subsidy plan of $10 billion and is willing to bear half of the cost of semiconductor facility construction. In addition, Indian state governments have pledged an additional 20% financial support.
Although the Indian government also requires Samsung Electronics and SK Hynix to invest, it is reported that India ranks relatively low on the priority list of these two companies. Samsung and SK Hynix both focus on investing in their semiconductor clusters in Yongin City and their respective projects in the United States, including factories and R&D facilities, said an industry insider, “At present, India lacks the necessary infrastructure to accommodate storage companies to establish production facilities, and there is a significant gap between the storage demand in the Indian market and the storage products supplied by our companies, resulting in a memory shortage situation in the Indian market.”