Nexperia says it will partner with Tata on chip production, packaging in India

India's Prime Minister Narendra Modi is set to court global investors with a massive semiconductor conference in New Delhi, as part of the country's ambitious bid to establish a presence in the chip-making industry. The three-day Semicon event, marking India's fledgling chip and electronics industry, aims to showcase the country's burgeoning industry and attract global semiconductor producers, partners, customers, equipment makers and parts suppliers.

According to Pranay Kotasthane, deputy director of Bangalore-based think tank Takshashila Institution, Modi's Semicon in New Delhi is a strategic move to signal India's long-term commitment to advancing the chip industry. The over $30 billion bet highlights the country's ambition to become a major player in higher value-added industries, including chips, as part of its modernization drive to boost exports and create better-paying jobs.

Over 600 exhibitors, 150 speakers, and 300 global companies will gather at a 15,000 sq m convention center in New Delhi for the event. The showcase will include startups, student hackathons, and industry exhibits. India recently pledged an additional ₹1.9 trillion (US$19.8 billion) in subsidies to boost local chip and electronics production - a move that has already helped Apple Inc. expand its iPhone manufacturing in the region.

India's semiconductor push is part of a larger global trend, where countries are committing massive budgets to homegrown chip production as the race for AI supremacy intensifies. AI is rapidly becoming ubiquitous in various sectors, from self-driving cars and healthcare to finance and fraud detection. However, chip scarcity and the complex manufacturing process have made chipmakers and their products key decision-makers in the AI landscape.

While India's endeavors are still in the early stages, the country is accelerating efforts to build a domestic industry spanning the entire supply chain. The government offers seed funding to startups working on semiconductor products, support for chip-making equipment, and assistance with new fabrication facilities and assembly plants.

Although chipmaking is a complex and lengthy process that countries like Taiwan, South Korea, the US, and Malaysia have taken decades to perfect, India is determined to move swiftly to produce advanced chips and advanced packaging to catch up.