Semiconductor | Business Upturn

India and Japan sign MoU for Semiconductor development

Adesh Dixit — Thu, 20 Jul 2023 14:19:07 +0000

India and Japan have signed a Memorandum of Understanding (MoU) to establish a joint mechanism which will be overseeing collaboration between the two countries in the manufacturing, design and development of semiconductors, said Union Minister Ashwini Vaishnav.

“The MoU is on five fronts, viz. semiconductor design, manufacturing, equipment research, talent development, and bringing resilience to the semiconductor supply chain,” said Minister Vaishnav.

“The two countries will establish an implementation organization to decide on collaboration on government-to-government and industry-to-industry fronts,” he added.

Japan’s Rapidus Corp., which is one of the leading semiconductor manufacturer will be playing a major role in this MoU as per the Union Minister Vaishnav in his press briefing. Other companies includes SoftBank, Sony and Toyota.

“Rapidus will be playing a role in focusing on the full value chain, instead of what other countries are doing, which is emphasizing only on fabrication. With Japan, we usually have detailed discussions and once the agreement is signed, it goes on for years,” he further added.

Ashwini Vaishnav also said that for a long time Japan has been a leader in the semiconductor industry, he said, “they lead silicon wafer and ingot manufacturing. In raw materials too, such as chemicals and gases they have a lead. In equipment manufacturing, especially lens, Tokyo Electron is a big company.”

“India can be pitched as a raw materials supplier for semiconductors. Dahej in Gujarat can be hub for the supply of raw materials to global corporations.” he added.

Foxconn’s worries over Vedanta’s financials said to be potential reason for deal withdrawal

Adesh Dixit — Tue, 11 Jul 2023 17:04:52 +0000

Foxconn and the Indian Government had concern over the financials of Vedanta, which is said to be a potential reason why the Taiwanese company parted ways with Vedanta on the joint venture of chip making as per report by Reuters.

Vedanta’s London based parent company, Vedanta Resources has been under a constant debt rise.

In its statement to Reuters, Vedanta said that it is in a “comfortable” financial position and there was “no basis” on such speculations.

The Indian Information Technology ministry did not comment over the split. Various rating agencies downgraded Vedanta Resources on the ground that the firm is in the risk of debt defaults.

Debarring the reports, Vedanta Chairperson Anil Agarwal said, “There have been no defaults on debts from the group.”

Meanwhile, Foxconn on Tuesday said it plans to apply for incentives that India is offering under its semiconductor manufacturing policy. This comes a day after the company parted ways with Vedanta on a $19.5 billion chip making joint venture.

“Foxconn is committed to India and sees the country successfully establishing a robust semiconductor manufacturing ecosystem,” the company said.

“Foxconn is working toward submitting an application.” It added.

Yesterday, Foxconn withdrew from its semiconductor joint venture with Indian conglomerate Vedanta Group, which is a major setback to Prime Minister Narendra Modi’s plans to manufacture semiconductor chips in the country.

“There was recognition from both sides that the project was not moving fast enough” and there were other “challenging gaps we were not able to smoothly overcome, without sharing details.” Foxconn said on Tuesday.

“This is not a negative”, company added in the statement.

Micron signs MoU with India to build 1st semiconductor plant in Gujarat

Sidharth Badlani — Wed, 28 Jun 2023 18:09:07 +0000

The Indian government and the US memory chip company Micron Technology inked a memorandum of understanding on Wednesday to develop a semiconductor plant, the company’s first unit there.

Last week, Micron said that it would invest as much as $825 million (or around Rs. 6,850 crore) in the facility. The overall investment, with help from Gujarat and the Indian federal government, will be close to $2.75 billion (about Rs. 22,560 crore), it was claimed.

The central government of India will provide 50% of the overall investment, and the state of Gujarat will contribute 20%. The proposal was reportedly authorised by the Indian Cabinet prior to Prime Minister Narendra Modi’s official visit, which began last Wednesday.

According to Micron, work on the new plant in Gujarat is scheduled to start in 2023, with the first phase of the project likely to be completed by the end of 2024. According to the report, the project’s second phase is anticipated to begin in the second half of this decade. Up to 5,000 new direct Micron jobs will be created by the two stages taken together.

This project will provide a maor stimulus to India’s efforts to become a top destination for semiconductor manufacturing. It would also encourage other semiconductor manufacturers to set up units in India. As firms look to diversify and move out of China, it is imperative for India to continue with efforts to project itself as a lucrative alternative to China.