Key Points

Global technology companies are rushing to fill India's semiconductor manufacturing gaps through massive investments and local operations. Delta Electronics is leading this charge with a $500 million investment in infrastructure and R&D centers across India. The government has approved 10 semiconductor manufacturing projects worth over ₹1.60 lakh crore spread across six states. India expects its first commercially produced chips from new facilities before the end of this year, marking a significant milestone in its semiconductor ambitions.

Key Points: Global Tech Giants Target India Semiconductor Gaps at Semicon 2025

  • Delta Electronics invests $500M in local semiconductor equipment manufacturing
  • India approved 10 semiconductor fabs across 6 states with Rs 1.6L cr investment
  • Semicon India 2025 event attracts 30+ countries for global collaboration
  • First made-in-India chips expected from CG Power plant by year-end
5 min read

Tech gaps in India's semiconductor sector draw global players eyeing big opportunity

Delta Electronics and global players invest $500M in India's semiconductor ecosystem, bridging tech gaps through R&D and local manufacturing ahead of Semicon India 2025.

"The technological gap in high-speed precision machinery is 100% dependent on machines made outside India - Anil Chaudhry, Delta Electronics India"

New Delhi, August 31

The technological gaps in India's emerging semiconductor ecosystem are capturing the interest of global players from allied sectors, who view this as a strategic opportunity to support the country's goal of becoming a preferred destination for chip manufacturing.

Many companies are ramping up their operations in India and focusing on localising equipment manufacturing, bridging gaps through R&D, skilled workforce training, and infrastructure development -- as semiconductor firms increasingly seek partners with deep expertise and a strong local footprint in the Indian ecosystem, according to industry executives.

The participation of firms in India's flagship semiconductor-focused event, Semicon India 2025, supports the trend.

Scheduled from September 2-4 in the national capital, the event will attract more than 30 countries as participants in this year's edition.

SEMICON India 2025 aims to catalyse global collaboration, support domestic innovation, and strengthen India's role as a trusted, scalable, and competitive electronics manufacturing hub.

International companies, including Applied Materials, IBM, Infineon, LAM Research, Merck, Siemens, TSMC, and Tata Electronics, among others, will participate.

Speaking to ANI, Anil Chaudhry- Head, Robotics & Solutions at Indian arm of Taiwan-based Delta Electronics (India) said that the Delta sees India as a promising market, not only because of the increasing investments and government initiatives like the announcement of 10 semiconductor fabs but also due to the current technological gap that exists in high-speed precision machinery, which remains largely dependent on imports.

"So, the technological gap in terms of high-speed precision we can place. It is 100 per cent dependent on the machine, which is made outside India. And then what is basically we have taken the initial steps to start doing a level of localisation and then we see in the future we will be more focusing on the make in India equipment which fits not only to the semiconductor market, but also to the electronics market," Chaudhry said.

He said, leveraging Delta's strong foundation in Taiwan, the company is working toward localising equipment manufacturing and bridging that gap through R&D, skilled workforce training, and infrastructure development.

The company has invested USD 500 million in its operations, with a significant portion allocated to infrastructure, including land, test equipment, and factory expansion.

Taiwan's Delta Technologies specialises in offering end-to-end solutions in both the semiconductor fabrication (fab) and assembly-testing (T-set) segments. This includes digital twin technologies, factory-level software integration, machine simulation, and facility management systems that enable seamless tool-to-utility connectivity within cleanroom environments.

Chaudhry said that semiconductor companies are looking for companies that have expertise in the allied activities of the core semiconductor manufacturing, which is propelling the players to localise their operations in Indian soil.

Supporting the trend, he noted that Delta is not alone in the Indian market but is facing competition from Japanese, Korean, and Singaporean players.

"They (Semiconductor Cos) are looking for people who are already in India...and they would like to work along with us as much as possible... So we are leveraging that advantage. We have a unique proposition in the Indian market," Chaudhry noted.

"We are creating the right infrastructure in delta India with the experience we have from the international market, like Taiwan and Japan. And in terms of infrastructure, we are creating high-standard labs where we train our foremen and our operators to do the very specific actions required in the semiconductor," he further added, indicating how global companies are strengthening their Indian units to capture the semiconductor opportunity.

"We are adding the R&D people in the organisation who can understand how to generate the semiconductor drawing in terms of piping, in terms of the movement of the tool. We are creating the software team," Chaudhry stated.

Talking about the intent to participate in the Semicon India 2025, Sanjeev Srivastava - Head, Industrial Automation, said, "We have a lot of products and technology that would go along with the semiconductor industry. So that is one of the intents of participating in this event, and also, India is going to be a big hub for semiconductors, and our initial engagement in this industry will be beneficial for both the industry as well as for us."

Discussing the company's localisation efforts, he noted that with fourteen regional offices, four manufacturing facilities (Rudrapur, Gurgaon, and Krishnagiri), and two R&D centres (Gurgaon and Bengaluru), Delta has a strong presence across India, supported by more than 200 channel partners.

As of date, the government has approved 10 semiconductor manufacturing projects with a cumulative investment of more than Rs 1.60 lakh crore in 6 states - Gujarat, Assam, Uttar Pradesh, Punjab, Odisha, and Andhra Pradesh.

India is expected to see its first commercially produced chips from new facilities before the end of this year. On August 28, Union Minister Ashwini Vaishnaw, the first Made-in-India semiconductor chip, will be rolled out from Sanand's CG plant.

- ANI

Share this article:

Reader Comments

P
Priya S
Hope the local R&D centers actually develop indigenous technology rather than just assembling imported components. We need true innovation, not just assembly lines.
A
Aman W
The ₹1.6 lakh crore investment across 6 states is massive! This could transform regional economies. Hope the benefits reach local communities and not just big corporations.
M
Michael C
Working in semiconductor industry abroad. India's timing is perfect given global supply chain diversification. The talent pool here is exceptional - just needs the right infrastructure and investment.
S
Shreya B
Hope they focus on proper skill development programs. Semiconductor manufacturing requires specialized training that our engineering colleges don't currently provide adequately.
K
Karthik V
First made-in-India chip by year-end? That's ambitious but exciting! If we can achieve this, it will be a huge milestone for Indian manufacturing 🚀
N
Nisha Z
Good to see companies like Delta investing $500M and focusing on local R&D. Hope other global players follow suit and don't just see India as a cheap manufacturing base.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50