NXP Semiconductors is planning to investment more than $1bn (Rs84bn) to expand its research and development (R&D) activities in India, reported Reuters, citing the company’s CEO Kurt Sievers.
“NXP is committed to double its R&D efforts here in the country in the next few years, which is far in excess of a billion dollars,” stated Sievers at the Semicon India conference.
The company is currently engaged in discussions with the automotive sector and other industries within India.
NXP operates four semiconductor design centres in the country, employing approximately 3,000 individuals.
While chip manufacturing is still emerging in India, it plays a vital role in the nation’s economic strategy.
The Indian government has introduced a $10bn incentive package to enhance its semiconductor industry to compete with leading chipmaking nations such as Taiwan.
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By GlobalData
By 2026, India’s semiconductor market is projected to reach a value of $63bn.
Global technology firms, including NVIDIA and AMD, have already established R&D centres in India, highlighting its growing prominence in the international semiconductor landscape.
These developments are part of a broader strategy to diversify the global supply chain, currently dependent on regions like China and Taiwan.
Speaking at the event, Indian Prime Minister Narendra Modi said: “India’s contribution of about 20% of chip designing talent to the industry is growing and we are preparing an 85,000-strong semiconductor workforce of technicians, engineers and R&D experts.”
To bolster its electronics sector, India approved the establishment of three semiconductor plants in February 2024, with a combined value of Rs1.26trn.
These projects involve major companies such as Tata Group and CG Power.
In 2023, Micron’s CEO Sanjay Mehrotra revealed that the company’s planned $2.7bn testing and packaging facility in Gujarat is expected to generate around 5,000 jobs.
Applied Materials, a supplier of chipmaking equipment, also announced that it would invest $400m over four years in a new engineering centre in India.
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