india-rises-as-top-chipmaking-equipment-hub

The chipmaking equipment industry is setting its sights on India as the country positions itself as a promising alternative to China amid escalating tensions between Beijing and the West.

 

For the first time, the international chip industry group SEMI will host its Semicon exhibition in India this September. The event, which has previously taken place in the US, Japan, Europe, Taiwan, South Korea, China, and Southeast Asia, marks a significant milestone for India's growing semiconductor sector.

 

Several prominent Japanese companies, including Tokyo Electron, Disco, Canon, Tokyo Seimitsu, and Daifuku, are scheduled to attend. Tokyo Electron plans to showcase equipment for wafer deposition, coating, and other front-end steps in the chipmaking process.

 

Additionally, US-based companies such as Applied Materials, Lam Research, and KLA will also have substantial booths at the exhibition.

 

The shift in international supply chains away from China, spurred by US-China tensions, is benefiting India. Apple, for instance, is relocating the production of iPhones and other products from China to India.

 

In March, Prime Minister Narendra Modi laid the foundation stone for three semiconductor projects worth Rs 1.25 lakh crore. Among these is a chip fabrication facility at the Dholera Special Investment Region (DSIR) in Gujarat, being set up by Tata Electronics Private Limited (TEPL) with an investment exceeding Rs 91,000 crore.

 

Additionally, an Outsourced Semiconductor Assembly and Test (OSAT) facility in Morigaon, Assam, is being established by TEPL for Semiconductor Assembly, Testing, Marking, and Packaging (ATMP) with an investment of around Rs 27,000 crore.

 

In April, Union Railways and IT Minister Ashwini Vaishnaw announced that India has commissioned four semiconductor manufacturing units, with the aim of becoming one of the world's largest semiconductor hubs within the next five years.

 

According to Hong Kong-based Counterpoint Technology Market Research, India’s semiconductor-related market is projected to reach $64 billion by 2026, nearly triple its size in 2019.