India's chip-making prospects unfazed as AMD and Vedanta Forge Ahead

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India's chip-making prospects unfazed as AMD and Vedanta Forge Ahead

India's chip-making prospects unfazed as AMD and Vedanta Forge Ahead

Industry News
Aug 01,23

It was revealed that the first phase of Vedanta's chip-making project would be completed within two-and-a-half years.

India's chip-making prospects unfazed as AMD and Vedanta Forge Ahead

AMD Chief Technology Officer Mark Papermaster made the announcement about India's chip-making prospects at the annual semiconductor conference, where he was joined by Prime Minister Narendra Modi.

Despite Taiwan's Foxconn pulling out of the $20 billion semiconductor-making venture with Anil Agarwal's group, the mining baron expressed unwavering confidence. He revealed that the first phase of Vedanta's chip-making project would be completed within two-and-a-half years.

Earlier this month, Foxconn, also known as Hon Hai Technology Group, decided to withdraw from the chip-making joint venture with Vedanta but expressed its intention to apply for incentives under the Indian government's semiconductor production plan.

Vedanta has already lined up partners and is poised to venture into chip-making this year. This move is part of India's strategy to reduce its dependence on expensive imports from Taiwan and China.

The Indian government has offered $10 billion of fiscal incentives to attract chipmakers to establish manufacturing facilities within the country. The market for semiconductors in India is expected to triple to about $64 billion by 2026, according to Counterpoint Research.

In addition to AMD's plans to open a new design centre campus in Bengaluru by the end of the year and create 3,000 new engineering roles, Anil Agarwal's group is investing $5 billion in the first phase of its semiconductor project, aiming to produce a Made-in-India chip within 2.5 years. Vedanta is currently in talks with three potential technology partners for its ambitious plans encompassing foundry, chip manufacturing, packaging, and design.

Despite the challenges, Foxconn's Chairman Young Liu believes that the semiconductor ecosystem in India is for the "very brave." He emphasised the importance of trust and collaboration between India and Taiwan in the semiconductor development journey.

Despite Foxconn withdrawing from the joint venture with Vedanta, it remains actively engaged in searching for optimal partners for future projects.

Overall, India is taking significant steps to bolster its semiconductor industry and foster indigenous chip manufacturing, supported by partnerships with global companies like AMD and potential collaborations with firms like Foxconn.