NXP Semiconductors plans to invest over $1 billion in expanding its R&D activities in India, aiming to double its efforts in the coming years, according to CEO Kurt Sievers at the Semicon India conference. The expansion involves significant collaboration with the automotive sector and other industries.
The company operates four semiconductor design centres in India, employing about 3,000 people. This move is part of India’s strategic efforts to strengthen its emerging chip manufacturing capabilities, which are central to the nation’s economic strategy.
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India’s government has launched a $10 billion incentive package to boost the local semiconductor industry, positioning it to compete with global leaders like Taiwan. By 2026, the Indian semiconductor market is expected to grow to $63 billion.
Global tech giants such as Nvidia and AMD have established R&D centres in India, underscoring the country’s increasing significance in the global semiconductor arena. These efforts are part of a strategic initiative to diversify the global supply chain, which is heavily reliant on regions like China and Taiwan.
Prime Minister Narendra Modi highlighted India’s growing role in chip design, contributing about 20% of the global talent pool. The country is also preparing an 85,000-strong semiconductor workforce. Meanwhile, initiatives like Micron’s $2.7 billion facility in Gujarat and Applied Materials’ $400 million investment underline significant foreign interest and economic potential.
