NXP Semiconductors plans to invest over $1 billion (₹84 billion) to enhance its research and development (R&D) operations in India, according to Reuters. At the SEMICON India conference last week, CEO Kurt Sievers announced this commitment, stating that the company’s R&D investment in the country will be more than double the billion-dollar figure in the coming years.
Currently, NXP is in talks with the automotive industry and other sectors within India. The company already operates four semiconductor design centres nationwide, employing around 3,000 people. Although chip fabrication in India is still developing, it is crucial to the country’s economic plans.
The Indian government has launched a $10 billion incentive package to boost the semiconductor industry and compete with leading chipmaking countries like Taiwan. India’s semiconductor market is expected to grow to $63 billion by 2026. Global tech firms, including Nvidia and AMD, have already set up R&D centres in India, underscoring its rising importance in the semiconductor sector.
Indian Prime Minister Narendra Modi highlighted at the conference that India contributes approximately 20% of global chip design talent and is preparing an 85,000-strong workforce of technicians, engineers, and R&D professionals.
Additionally, in February 2024, India approved three semiconductor plants worth ₹1.26 trillion, involving companies like Tata Group and CG Power.
In 2023, Micron’s CEO Sanjay Mehrotra announced a $2.7 billion testing and packaging facility in Gujarat, expected to create around 5,000 jobs.
Applied Materials also revealed plans to invest $400 million over four years in a new engineering centre in India as the country moves towards diversifying its global semiconductor supply chain.
