NXP semiconductors open to setting up fab unit in India

NXP Semiconductors, a division of Royal Philips NV, is open to establishing a fabrication unit in India, provided there is a suitable ecosystem in the country. Hitesh Garg, vice-president and India country manager, stated that the company would support the development of an ecosystem and manufacture chips in India if feasible. NXP CEO Kurt Sievers had already discussed the possibility of setting up a base in India with partners such as Taiwan Semiconductor Manufacturing Co. and GlobalFoundries.

Currently, NXP has six front-end wafer fabrication facilities, with four located in the US, and two in the Netherlands and Singapore. The company also has assembly and testing sites in China, Taiwan, Thailand, and Malaysia. In order to attract global chipmakers, the Indian government has established the Semicon India program, which offers financial incentives of up to 50% subsidy on initial investments for chip or display fabs. Micron Technology Inc. and Advanced Micro Devices, Inc. (AMD) have already taken advantage of this incentive scheme.

Garg emphasized the importance of utilizing the subsidy effectively and ensuring a strong business case for setting up a fab unit. NXP operates in various nodes and applies its technology in different areas such as battery management solutions, radar solutions, security solutions, connectivity solutions, and advanced processor solutions. Garg maintains frequent communication with the top management, keeping them informed about the opportunities and developments in India.

NXP is actively working to bring its ecosystem partners to India, such as Austrian firm AT&S, to expand their operations and contribute to the growth of the ecosystem. The company has a significant presence in India with around 4,000 engineers working across multiple centers of excellence in Noida, Bengaluru, Pune, and Hyderabad. These engineers focus on innovation for automotive, the Internet of Things, and the industrial and mobile markets. Livemint