Report Wire - Indian co invests $1bn for semiconductor manufacturing facility in Tamil Nadu

Report Wire

News at Another Perspective

Indian co invests $1bn for semiconductor manufacturing facility in Tamil Nadu

2 min read
Polymatech claimed that its semiconductor manufacturing and packaging facility will start producing chips within the next couple of weeks... Photographer: Maurice Tsai/Bloomberg News

Tamil Nadu-based semiconductor manufacturing firm Polymatech will make investments $1 billion to broaden its chipset manufacturing and packaging facility within the state. Nandam Eswara Rao, founding president of Polymatech, mentioned that the primary section of the power may have the capability to provide 250 million chips per 12 months.

Rao added that the corporate has filed for a 25% subsidy on capital expenditure by means of the federal government’s production-linked incentive (PLI) scheme for semiconductor manufacturing, and has obtained “in-principle approval” for its first phase of investment. Under this phase, Polymatech has signed a memorandum of understanding (MoU) with the Tamil Nadu government, and made an investment of $130 million to expand its facility in the state.

Polymatech claimed that its semiconductor manufacturing and packaging facility will start producing chips within the next “couple of weeks”.

Chipmakers all over the world are believed to be in talks with the union authorities to construct chip manufacturing, meeting, testing and packaging services within the nation. In May, a authorities official who requested anonymity advised Mint that a number of firms, together with Taiwan Semiconductor Manufacturing Co (TSMC) — the world’s largest chipmaker by quantity — are in talks with numerous state governments to arrange semiconductor manufacturing services.

The first chip manufacturing facility was tipped to be sanctioned by the tip of 2022, the official added.

On 20 July, Rajeev Chandrasekhar, union minister of state for electronics and knowledge know-how (IT), advised Parliament that the Ministry of Electronics and IT (Meity) had obtained 23 purposes for the semiconductor PLI scheme. Announced in December final 12 months, the scheme provided incentives of as much as ₹2.3 lakh crore, in a bid to draw corporations engaged in semiconductor manufacturing, testing, packaging and design.

Rao added mentioned t the corporate will look to “indigenise” various components required in semiconductor chip manufacturing. “We are now importing silver paste (a component required in chip manufacturing), and high-temperature co-fired ceramic substrates. We are importing them today, but will produce them in-house eventually,” he mentioned.

Catch all of the Technology News and Updates on Live Mint.
Download The Mint News App to get Daily Market Updates & Live Business News.

More
Less

Subscribe to Mint Newsletters

* Enter a sound electronic mail

* Thank you for subscribing to our publication.

First article