NXP Semiconductors to invest more than $1 billion in India
- In Reports
- 04:13 PM, Sep 13, 2024
- Myind Staff
The Dutch-originated NXP Semiconductors is going to establish its base in India. According to reports, the company will invest over $1 billion in India, boosting its research and development efforts. The Dutch company’s CEO said that it will double its efforts in R&D in the country. At the Semicon India conference held near New Delhi on Wednesday, he said, “NXP is committed to double its R&D efforts here in the country in the next few years, which is far in excess of a billion dollars.” The conference also marked the presence of global names who also looked to establish their base in the industry.
Speaking on the progress, he said the company is in negotiation with the automotive sector and other industries in the country. It has four semiconductor design centres along with 3,000 employees.
Even though India is still in the early stages of the chipmaking business, it is still vital to the country's economic growth goals. Around $10 billion incentive package has been allocated to help India bolster efforts to rival global chipmaking heavyweights like Taiwan. India estimates that the semiconductor business will hit $63 billion by 2026. Although key players in the semiconductor industry like Nvidia and AMD have already established substantial research and design centres in the country, ensuring its rising importance in the global ecosystem that is aiming to reduce its reliance on hubs like China and Taiwan.
"India's contribution of about 20 per cent of chip designing talent to the industry is growing and we are preparing an 85,000-strong semiconductor workforce of technicians, engineers and R&D experts," Indian Prime Minister Narendra Modi said at the event. In February, India approved the construction of three semiconductor plants worth Rs 1.26 trillion ($15 billion) to firms including Tata Group and CG Power as India aims to establish its position as a key player in the electronics sector.
According to a statement made by Micron CEO Sanjay Mehrotra last year, it said the US memory chip maker's planned $2.7 billion testing and packaging unit in Gujarat which would significantly help create about 5,000 jobs in the state. In June last year, chipmaking equipment supplier Applied Materials said it would invest $400 million over four years to establish a new engineering centre in India. In July, NXP reported the worst quarterly revenue decline in four years and forecasted third-quarter revenue below estimate, causing overall demand worries for automotive chips.
Image Source: Business Standard
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