For IndiaIn the past 39 years, China has rapidly developed its semiconductor design and verification capabilities. Only in Bangalore international science and Technology Park, India, there are R & D bases of more than half of the world's famous enterprises such as Intel, Qualcomm, Microsoft and NVIDIA. On the basis of excellent software capability, its IT outsourcing business is in full swing. Mobile phone manufacturers represented by Samsung, Xiaomi, Huawei, oppo and vivo have set up factories in India.

It has always been India's dream to establish a chip manufacturing plant in India. In recent years, there have been frequent developments in India, such as the introduction of large-scale chip subsidy policies or the active search for cooperation with large manufacturers. Can the chip manufacturing plants in this country really land in the past two years?

Developing semiconductors based on software

Indian semiconductor was first developed inIn 1983, the Indian government established the state-owned semi conductor Laboratory (SCL), whose technology mainly comes from the technology license of RCA in the United StatesYes. After that,SCL was taken over by the Indian Ministry of space. Since then, SCL has been committed to the design and development of very large scale integration (VLSI) equipment. At present, it has developed highly reliable ASICs in the industrial and aerospace fields.

Bill• Gates predicted in 1998 that India would be the software superpower in the next century. As predicted, in the past 39 years, India's semiconductor design and verification capabilities have been particularly outstanding. According to public information, the world's top 10 fabless semiconductor design companies and 23 of the top 25 semiconductor suppliers have set up companies in Bangalore, Chennai, Pune and other cities with high degree of development in India.

Bangalore hasKnown as "Silicon Valley of India", it is one of the largest chip design centers in the world. Intel, IBM, Microsoft, NVIDIA, general electric and St semiconductor have all set up R & D bases here. In addition, the Indian Institute of technology, known as the "treasure in the crown of science" in India, has continuously sent many talents to the global science and technology industry. In terms of the research and development ability of semiconductor VLSI and chip design, the Indian Institute of technology is very outstanding.

On this basis, itsThe development of IT outsourcing business is full of momentum, so that at the technology summit in Bangalore, India in 2020, Indian Minister of communication and information technology Prasad directly stated that "Apple's nine supply chain partners have transferred from China to India."

Several enterprises have submitted investment plans

The prominence of software strength has also exposed the hard injury of India's insufficient hardware capacity. At present, India's semiconductor products are highly dependent on imports and the demand is increasing. It is reported that India's demand for semiconductors has accounted for half of the global demand for semiconductorsThis is also an important reason why India urgently needs to develop semiconductors.

stayIn 2021, India passed a US $10 billion subsidy plan to help foreign-funded enterprises related to semiconductors speed up their layout.

Inspired by this plan, more than five companies have submitted chip and display investment plans to India, with a total amount ofUS $20.5 billion, such as Vedanta, Singapore IGSS ventures and ISMC, which established a joint venture with Foxconn.

It is reported that Vedanta and Foxconn Technology Group under Hon Hai Precision（Foxconn) signed a memorandum of understanding on establishing a joint venture company involved in semiconductor manufacturing in February this year, and plans to establish a joint venture chip manufacturing plant in India to jointly promote the localization of semiconductor manufacturing in India.

Vedanta and Hon Hai respectively contributed to the new company60% and 40%, assuming that the circuit width is 28-65nm, the new factory will be put into operation in 2024 or 2025, 70-80% of the chips produced will be supplied to the domestic market of India, and the rest will be exported.

In addition, according to foreign media recently,Sahasra semiconductors has decided to set up a memory chip assembly and sealing test department in India, and plans to sell its own memory chips by December this year.

stayIn 2021, India went to Taiwan, China twice to discuss semiconductor cooperation with TSMC and other large manufacturers. According to the latest news in the industry, Taiwan, China delegations such as TSMC and UMC will visit India in the next few weeks to discuss cooperation in manufacturing chips for electronic products and communication equipment.

Can Indian chip manufacturing really be realized?

The above news seems to indicate that India may land its first wafer manufacturing plant in recent years, but the reality is quite challenging.

Specifically, the investment and construction of a wafer manufacturing plant requires a huge investment, and its entire return period is more than ten years. In addition, the requirements for the production environment are very harsh. Clean water resources, clean air, stable power supply, efficient logistics, and well-developed infrastructure are the most basic requirements for the development of semiconductors.

However, many of the above basic conditions are still a headache for India.

Considering the actual situation, after comparing the development of Malaysia, Vietnam and other Southeast Asian countries, the industry has also raised other possibilities for the development of India. More opinions are focused on whether India can give priority to the development of packaging business.

Public information shows that the packaging business needs a large number of labor support, which is exactly where India's advantages lie.

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