India is poised to become a new contender in the chip industry, presenting a fresh challenge to both China and the United States. The opportunity for India arises as it gears up to develop its domestic industry, offering an alternative for companies looking to reduce reliance on Chinese chips due to geopolitical issues with the United States.
The domestic industry in India is thriving, with Qualcomm, the US giant, opening a new design center in Chennai, India. Additionally, Prime Minister Narendra Modi recently inaugurated three semiconductor factories. One of them, a joint venture between Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corp, is set to produce India's first semiconductor chip by 2024.
Frank Huang, Chairman of PSMC, expressed that the company aims to create 1,600 job opportunities through the new factory, with a focus on designing wireless technology.
"Our presence in India creates opportunities for numerous Indian companies," remarked Qualcomm CEO Cristiano Amon, highlighting the collaborative prospects emerging in the Indian semiconductor landscape.
India is confident in its ability to break into the top five semiconductor producers globally. Currently, the top five countries in the industry are the United States, China, South Korea, Japan, and Taiwan.
According to TrendForce's December report, Taiwan leads the global semiconductor manufacturing capacity, accounting for nearly half of the total production at approximately 46%. Other major contributors include China (26%), South Korea (12%), the United States (6%), and Japan (2%).
"We believe that within the next five years, we will be one of the top five semiconductor-producing countries in the world," stated Ashwini Vaishnaw, India's Minister of Electronics and Information Technology, Railways, and Communications.
India's ambitious strides in the semiconductor industry signal a significant shift in the global landscape, with the country poised to emerge as a formidable player alongside traditional powerhouses like China and the United States.