NXP Semiconductors will invest over $1 billion (roughly Rs. 8,398 crore) in India, doubling its research and development efforts, the Dutch company's CEO said on Wednesday, joining global names betting on a country looking to establish its presence in the industry.
"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," CEO Kurt Sievers said at the Semicon India conference near New Delhi.
He said the company is in talks with the automotive sector and other industries in the country, where it has four semiconductor design centers, with about 3,000 employees.
Though chipmaking is still at a nascent stage in India, it is a crucial element of its economic strategy, with a $10 billion (roughly Rs. 83,985 crore) incentive package allocated to bolster efforts to rival global chipmaking powerhouses like Taiwan. India expects its semiconductor market to be worth $63 billion (roughly Rs. 5,29,102 crore) by 2026.
Major players like Nvidia and AMD have established substantial research and design centers in the country, underscoring 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 percent 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," Prime Minister Narendra Modi said at the event.
In February, India gave the go-ahead to construct three semiconductor plants worth 1.26 trillion rupees ($15 billion) to firms including Tata Group and CG Power, as the country pursues its goal of becoming an electronics powerhouse.
Micron CEO Sanjay Mehrotra said last year that the US memory chip maker's planned $2.7 billion (roughly Rs. 22,677 crore) testing and packaging unit in Gujarat would help create about 5,000 jobs in the state.
Chipmaking equipment vendor Applied Materials said in June last year that it would invest $400 million (roughly Rs. 3,359 crore) over four years in a new engineering center in India.
NXP, in July, posted its worst quarterly revenue decline in four years and forecast third-quarter revenue below estimates, stoking demand concerns for automotive chips.
© Thomson Reuters 2024
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