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Semiconductor MNCs are Revitalizing Make in India

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India has been a hub for international companies for decades, and the presence of MNCs has played an important role in revitalizing the Indian economy. The Indian market offers a vast consumer base and skilled labor force, making it an attractive destination for global corporations. In recent years, the Indian economy has experienced significant growth, and MNCs' contribution to the 'Make in India' initiative contributed to this growth by achieving success in various sectors. Make in India is no longer considered an ‘option’ for MNCs looking to get a bigger piece of the pie in the Indian market; it has become a must-win proposition.

Tata Group’s Mega Semiconductor Manufacturing Facility in Dhola, Gujarat
Tata Electronics put forward the proposal to build a mega semiconductor manufacturing facility in Dhola, Gujarat, in collaboration with PSMC. The construction begins with a total investment of up to Rs. 91,000 crores and will create more than 20,000 direct and indirect skilled jobs in the region. With this huge project, Tata Electronics will enter the global semiconductor industry.

Tata Electronics has partnered with Powerchip Semiconductor Manufacturing Corporation (PSMC) to build India's first AI-enabled state-of-the-art factory. The Fab will have a manufacturing capacity of up to 50,000 wafers per month. It will include next-generation factory automation capabilities incorporating data analytics and machine learning to achieve industry-leading factory efficiency. The new semiconductor fab will manufacture chips for applications such as power management ICs, display drivers, microcontrollers (MCUs), and high-performance computing logic to meet growing demand in the automotive, computing, data storage, wireless communications, and artificial intelligence markets. The plant will meet the growing demand in the automotive, computing, data storage, wireless communications, and artificial intelligence markets.

VinFast’s EV factory in Tamil Nadu's Thoothukudi
VinFasts’ integrated electric vehicle and battery manufacturing unit is built on a 380-acre site in an industrial park owned by the State Industrial Promotion Corporation of Tamil Nadu (SIPCOT) in the village of Siranatham.

Even though its entry into the U.S. has not been as smooth as expected, VinFast, which has the third highest EV market capitalization after Tesla and Toyota, has committed to invest $500 million (Rs. 4,000 crores) in the first phase of the project over five years, which could amount to $2 billion (Rs. 16,000 Rupees), which could amount to as much as $2 billion (Rs. 16,000 crores). The facility is expected to create 10,000 local jobs.
The company plans to complete the construction of the plant within a year and roll out electric vehicles over another year. With a production capacity of 1.5 million vehicles per year, the new plant will also serve the export market, which is why the company chose Tutukudi, home to a major port.

AMD Design Center
The American semiconductor company, AMD, launched in Bengaluru its largest global design center. AMD's plant will put India at the top of the global semiconductor value chain. As the chip war between the U.S. and China heats up and the U.S. restricts Chinese companies' access to U.S. technology, India is hoping to enter an industry that is more important than oil, since all digital devices run on chips.

Government support will help fund the project, facilitate access to essential semiconductor infrastructure and resources, spur innovation, and enhance local talent development

Pre-competitive research accounts for 15-20 percent of the global value chain. Design accounts for 50 percent of value added. Front-end (wafer fabrication) generates 24 percent of the value added. The remaining value is added through the back end (assembly, test, packaging), electronic design automation (EDA), and core intellectual property (IP) that provides advanced software support for designs, equipment tools, and raw materials. India is trying to emerge as a chip manufacturing industry, a highly capital-intensive activity. Manufacturing is strategically important to India. This is because depending on other countries for chips, especially China and Taiwan, which is under threat of forced possession by China, could jeopardize India's security. Chips are used in all kinds of electronic devices, from debit cards to cell phones, from washing machines to airplanes, from missiles to space rockets.

Micron’s Assembly, Testing, and Packaging Plant at Sanand in Gujarat
Micron Technology, one of the world's largest semiconductor manufacturers, is on a mission to build a new assembly and test facility in Gujarat, India. Micron's new facility will enable assembly and test manufacturing of both DRAM and NAND products to meet the demands of domestic and international markets.

Micron's investment in the two phases of the project will be up to $825 million and will create up to 5,000 direct Micron jobs and up to 15,000 community jobs over the next several years. Under the government's Modified Assembly, Testing, Marking, and Packaging (ATMP) Scheme, Micron will receive financial support from the central government of India for 50 percent of the total project cost and from the state of Gujarat for an incentive amount equivalent to 20 percent of the total project cost. The combined investment by Micron and the two government agencies will be up to $2.75 billion for both phases combined. Government support will help fund the project, facilitate access to essential semiconductor infrastructure and resources, spur innovation, and enhance local talent development.

Google Pixel Phone Production in India
Google will manufacture Pixel phones and drones in Tamil Nadu. The company may invest billions of dollars in the project, but the actual amount of investment and the number of jobs to be created are unknown.
According to reports, the high-end Pixel 8 Pro will be manufactured in Foxconn's Kanchipuram plant near Chennai. The move comes as several top technology companies, including Apple, are shifting production out of China. Major global manufacturers are looking to diversify their supply chains outside of China amid geopolitical tensions and are considering India as an option. Besides this, Google's parent company, Alphabet, may also begin manufacturing drones through its Tamil Nadu-based subsidiary, Wing LLC. The high-tech giant currently offers drone delivery services to businesses throughout the U.S., Europe, and Australia using a fleet of lightweight, autonomous-flying delivery drones.



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