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| Gujarat Has Also Held Talks With Foxconn Over A Semiconductor Plant, And U.S. Memory Chip Firm Micron Technology Inc Is Also Building A Chip Assembly And Testing Facility In The State |
India’s Gujarat state is in talks with chipmakers in Japan, South Korea, and the United States for investments in the state, according to its top minister on Thursday. The talks are part of India’s ambitions to become a global chipmaker.
Semiconductor manufacturing is one of Prime Minister Narendra Modi’s key business agendas. However, initial bids to offer $10 billion in incentives to the chipmaking industry have faced challenges, with some proposals being stalled or canceled.
Gujarat, being Modi’s home state and one of India’s major industrial hubs, has recently held investment talks with various chipmakers. Officials from the state have also visited Japan to meet executives from the chips industry. However, the names of the companies have not been disclosed due to nondisclosure agreements, said Chief Minister Bhupendra Patel in an interview with Reuters.
“We continue to hold investment talks with semiconductor companies in Japan, South Korea, and the United States,” Patel said.
India’s chipmaking ambitions, first announced in 2021, have faced setbacks, and the country does not have any semiconductor manufacturing plants yet. Taiwan’s Foxconn withdrew from a $19.5 billion chips joint venture with India’s Vedanta, citing slow progress. Foxconn and Vedanta have since decided to pursue separate ventures, and Reliance Industries, owned by billionaire Mukesh Ambani, is also exploring opportunities.
In addition to talks with Foxconn, Gujarat has also held discussions with U.S. memory chip firm Micron Technology Inc for establishing a chip assembly and testing facility in the state.
Patel’s comments come ahead of the biennial Vibrant Gujarat Global Summit, where the state aims to attract investments in sectors including renewable energy, electric vehicles, and electronics manufacturing. The summit is expected to bring in a record number of foreign and domestic investors as part of Modi’s efforts to promote investment in the country.
India is becoming a desirable investment destination, particularly for companies looking to diversify their supply chain away from China. Tom Bailey, head of ETF Research at HANetf, noted that India’s large size and increasingly educated population give it an advantage.
