Dutch company NXP Semiconductors, announced plans to invest $1 billion in India, aiming to double its research and development efforts in the country. This move aligns with India’s ambition to establish itself as a significant player in the semiconductor industry.
CEO Kurt Sievers made this announcement at the Semicon India conference near New Delhi, emphasizing the company’s commitment to expanding its presence in India. NXP currently operates four semiconductor design centers in the country, employing about 3,000 people. The company is actively engaged with the automotive sector and other industries to explore further opportunities.
India’s semiconductor market is projected to reach $63 billion by 2026, reflecting the country’s growing importance in the global tech ecosystem. The Indian government has allocated a $10 billion incentive package to boost its chipmaking efforts, aiming to compete with established powerhouses such as Taiwan.
Other major tech companies, including Nvidia and AMD, have already established substantial research and design centers in India. This trend underscores the global industry’s efforts to diversify its supply chain and reduce dependence on traditional hubs such as China and Taiwan.
Indian Prime Minister Narendra Modi highlighted the country’s growing contribution to the semiconductor industry, noting that India provides about 20% of the global chip designing talent. He also mentioned plans to prepare an 85,000-strong semiconductor workforce comprising technicians, engineers, and R&D experts.
In February, India approved the construction of three semiconductor plants worth $15 billion, involving companies such as the Tata Group and CG Power.
Other significant investments in India’s semiconductor sector include Micron Technology‘s planned $2.7 billion testing and packaging unit in Gujarat, expected to create about 5,000 jobs, and Applied Materials‘ commitment to invest $400 million over four years in a new engineering center.
