NXP Semiconductors, a company of Royal Philips NV, plans to establish a fabrication plant in India, subject to the development of a suitable ecosystem in the nation, according to Hitesh Garg, vice president and country manager, India.

“If there is an ecosystem developed here, we will support the ecosystem. We will make sure that we are manufacturing our chips that are possible to be done here in India,” Garg said, reiterating views expressed by NXP Chief Executive Officer Kurt Sievers, who was in India earlier this year And met Prime Minister Narendra. Modi.

Six front-end wafer fabrication facilities are part of the $13 billion NXP, two of which are in the US (Austin, Texas, and Chandler, Arizona), four of which are overseas (the Netherlands and Singapore), and one each in each of the other three countries. China, Taiwan, Thailand, Malaysia, and other countries also have locations for assembly and testing.

India has set aside a $10 billion incentive fund to encourage international chip producers to establish fabrication, testing, and packaging facilities in the nation.

Companies looking to establish chip or display fabs in India can receive a subsidy of up to 50 percent through the Semicon India program of the Centre. In addition to providing subsidized land, power, and other infrastructure, states have offered an additional 25 percent investment subsidy in an effort to draw in large local and international businesses looking for a location.

The first company to choose the incentive program to establish a packaging and testing plant with an expenditure of $825 million is US-based Micron Technology Inc. Last week, device manufacturer Applied Materials Inc. announced plans to invest $400 million over five years, while chip designer Advanced Micro Devices, Inc. (AMD), which outsources manufacturing, announced a $400 million investment.

“70-75 percent subsidy can be a good attraction point, but at the same time, we have to ensure that we utilize it 100 percent. Only then will fabs make sense,” Garg said, elaborating on the need for a good business case for setting up a fab unit as the company moves from 130 nm to 5 nm advanced nodes, And are applied in areas starting from Battery Management Solutions to Radar Solutions, Security Solutions, Connectivity Solutions, Advanced Processor Solutions.
Garg stated that he was in regular communication with top management, providing them with perspectives on growth and prospects in India and soliciting their advice on the way forward.

NXP employs its R&D and massive chip design expertise to create solutions for a variety of industries. In four centers of excellence located in Noida, Bengaluru, Pune, and Hyderabad, 4,000 engineers—a third of those hired in the past year—work on technologies for the automotive, Internet of Things, industrial, and mobile markets.