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India seeks a letter of intent to build a chip factory, and it is still challenging for the semiconductor industry to take root.

Published :12/23/2020 3:38:28 AM

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According to reports from the Indian media Swarayja, in order to encourage and attract foreign investors to invest in the local chip manufacturing industry, the Ministry of Electronics and Information Technology (MeitY) of India recently solicited a letter of intent (EoI).


The deadline for submission of EoI proposals is January 31, 2021.

According to the Ministry of Electronics and Information Technology of India, up to now, the growth of the Indian manufacturing industry has mainly relied on the final assembly of imported parts and components and the printed circuit board assembly (PCBA) business. Although India already has a Fabless design ecosystem, it still lacks a manufacturing system for electronic components and chips.

According to reports, IDMs and foundries that wish to establish or expand existing fabs in India, as well as Indian companies/consortiums interested in acquiring semiconductor FAB fabs abroad, can submit EoI applications.

At the same time, the Ministry of Electronics and Information Technology of India expects that semiconductor companies with 28nm and smaller technology nodes and using 300mm wafer production can send EoI.

It is reported that the Indian government will provide a series of financial support for related manufacturers.

It is worth mentioning that,

South Korean media THE ELEC quoted people familiar with the matter as saying that due to the impact of the United States' sanctions on China, South Korean companies' expansion into China is no longer as advantageous as before. In recent years, more and more Korean companies have shown interest in expanding into India.

It is expected that South Korea’s investment in Indian semiconductors will increase in the future.