According to sources cited by Indian media outlet Financial Express, Apple is said to be in talks with Micron, Tata Group, and other Indian chip manufacturers to procure USD 12 billion worth of chips locally for iPhones produced in India.

Reportedly, Apple plans to shift 26% of its iPhone production to India by 2026. Industry sources cited by the report further suggest that by then, Apple will become the largest single buyer of Indian-made semiconductors, surpassing any other sectors such as defense, aerospace, and automotive.

Sources further point out that if Micron and Tata are able to produce chips that meet Apple’s requirements, a significant portion of the chips needed for iPhones will come from these companies, potentially creating substantial opportunities for the Indian semiconductor industry.

Before the outbreak of the pandemic, Apple iPhones and almost all other consumer products were manufactured in China. Following the introduction of the Production-Linked Incentive (PLI) scheme by the Indian government, potentially prompting Apple to begin shifting its production lines.

In 2022, the Indian government launched a USD 10 billion PLI scheme to stimulate domestic semiconductor production. To date, India has approved five chip manufacturing projects with a total value of roughly USD 18 billion and has reserved USD 1.2 billion for future projects.

Meanwhile, Micron’s chip plant in Gujarat, India, is expected to begin operations this year, marking the company’s first chip facility in India.

Additionally, Tata Group, in collaboration with PSMC, plans to build a packaging plant in Gujarat, with operations slated to commence in 2026, producing chips using 28nm, 40nm, 55nm, 90nm, and 110nm nodes.

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(Photo credit: Tata Group)

As various governments actively court semiconductor foundries in Taiwan, PSMC, in partnership with India’s Tata Group, held a groundbreaking ceremony for India’s first 12-inch fab on March 12th. As per a report from TechNews, PSMC has been collaborating with Japan and India recently to establish a semiconductor manufacturing path distinct from TSMC’s, marking Chairman Frank Huang’s latest overseas strategy amidst geopolitical shifts.

Due to various countries actively developing the semiconductor industry and seeking assistance from Taiwan, PSMC Chairman Frank Huang stated that this year is a transformative year for PSMC. In addition to optimistically viewing the new foundry opportunities brought about by geopolitical shifts, PSMC will also focus on a global development strategy centered around “Fab IP.”

“Taiwan’s semiconductor strength is formidable because no one else can do what Taiwan is doing,” said Frank Huang. He mentioned that, following President Tsai Ing-wen’s directive to assist India in building a semiconductor plant, it serves as a path for Taiwanese companies to understand the foundational cooperation model in India.

Therefore, PSMC decided to provide technology, with India responsible for building the plant and providing funding. The investment structure involves 70% from the Indian government and 30% from the Tata Group.

Global Expansion Through “Fab IP”

PSMC’s Fab IP strategy leverages its long-term accumulated experience in plant construction and semiconductor manufacturing technology to assist other countries in building semiconductor plants while earning royalties for technology transfers.

Frank Huang pointed out that the company has established a “Manufacturing IP Transfer Department” which does not invest money but only provides technology transfer. Its main focus is assisting other countries in building plants, extending from Japan and India to countries in the Middle East and Europe, all of which represent opportunities for Taiwan.

PSMC General Manager Brian Shieh believes that overseas plant construction requires a thorough consideration of operations and future costs. Therefore, PSMC tends to assist in building plants without assuming operational responsibilities. Instead, they only provide services, which differs from TSMC’s overseas cooperation model.

Due to the keen interest of various countries in IP technology transfer, Frank Huang believes that IP transfer will also become one of the important sources of revenue in the future. “Up to 7-8 countries have approached PSMC,” including Vietnam, Thailand, India, Saudi Arabia, France, Poland, Lithuania, and others.

He mentioned that from Japan to India, they have been actively engaged in IP transfer and are currently in discussions with two other countries. The source cited by the report also indicates that Vietnam is actively negotiating with PSMC, although PSMC has not responded to this.

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(Photo credit: PSMC)

According to TechNews, Taiwan’s semiconductor foundry, PSMC (Powerchip Semiconductor Manufacturing Corporation) recently announced its collaboration with Tata Electronics in India to establish the country’s first 12-inch wafer fabrication plant in Dholera, Gujarat. In an interview on the 4th, Chairman Frank Huang stated that Powerchip’s role primarily involves technology transfer, rather than financial investment, with Tata Group’s wafer plant expected to break ground on March 12.

Huang disclosed that the initiative is 70% funded by the Indian government, which had actively sought Taiwanese semiconductor firms to assist in India. This partnership with India will see PSMC aiding in the plant’s construction, while the operational responsibilities will wholly fall under India’s purview.

Following the agreement between the two parties on February 6, the groundbreaking ceremony, to be presided over by the President of India, is scheduled for this month on the 12th, with Huang himself attending.

Furthermore, Huang mentioned three major projects by the Indian government, including the collaboration between PSMC and Tata, support for Micron Technology’s manufacturing presence in India, and a back-end packaging initiative. Through PSMC’s assistance, the Tata Group plans to produce power management ICs, display drivers, microcontrollers, and high-performance computing logic chips at the 12-inch wafer facility, targeting automotive, computing and data storage, wireless communication, and artificial intelligence application markets.

(Image: PSMC)

The semiconductor supply chain is accelerating its globalization strategy. On February 29th, PSMC announced its collaboration with Tata Electronics in India to construct the country’s first 12-inch fab in Dholera, Gujarat. The construction of the fab is expected to commence within this year.

According to Tata’s press release, following the approval from the Indian government for Tata Group and PSMC to establish India’s first fab in Dholera, Gujarat, the investment for the fab is estimated at INR 91,000 crores (roughly USD 11 billion) and will generate over 20,000 direct and indirect skilled jobs in the region . The preliminary plan outlines a monthly production capacity of 50,000 wafers.

Cited from PSMC’s press release, Frank Huang, Chairman of PSMC, pointed out that Tata Sons Group is India’s largest and internationally-renowned company. India not only has the world’s largest population, it also has a huge domestic market. At this critical moment of the global restructuring of high-tech supply chain, the cooperation between PSMC and Tata Sons Group is indeed timely.

Randhir Thakur, CEO of Tata Electronics, stated as follows, “We will be able to serve our global customers’ requirements for supply chain resilience and meet the growing domestic demand.”

As per PSMC’s press release, Tata Electronics plans to produce power management IC, display driver IC as well as microcontrollers and high-performance computing logic at the Dholera 12-inch fab, in order to enter the automotive, computing and data storage, wireless communications, artificial intelligence and other application end markets.

As key countries worldwide continue actively building their own semiconductor supply chains, TSMC has taken the lead in initiating globalization efforts. UMC, through its collaboration with Intel to develop a 12-nanometer process platform, not only advances in process technology but also expands its presence into the United States.

On the other hand, after entering the Japanese market last year, PSMC further declared yesterday its partnership with Tata to establish India’s first 12-inch fab. This marks the first time a Taiwanese semiconductor foundry has entered the Indian semiconductor supply chain.

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(Photo credit: PSMC)

According to a report from Bloomberg, sources reveal that Israeli firm Tower Semiconductor has proposed a USD 9 billion investment to establish a plant, while India’s Tata Group has proposed an USD 8 billion fab. Sources further indicate that both proposed locations for these projects are in the state of Gujarat.

Tower Semiconductor plans to establish a plant in India, which is expected to establish a foothold in emerging markets and move past the shadow of the failed Intel deal. While the company’s sales are far behind those of Intel and TSMC, it produces components for major clients like Broadcom and holds a significant position in rapidly growing fields like electric vehicles.

Sources cited in the report say that Tower Semiconductor hopes to expand its facility over the next decade, with the ultimate goal of producing 80,000 wafers per month. If approved by the Indian government, the plant could become India’s first semiconductor facility operated by a major player in the industry.

Previous reports from India’s media outlet, the Economic Times, have also indicated that India’s Tata group may collaborate with Taiwanese semiconductor foundries like UMC or PSMC to establish the first fab in India. Initially, they would produce mature process chips with a planned monthly capacity of 25,000 wafers. If successful, it would mark Taiwan’s semiconductor industry’s first venture into India.

Additionally, Japan’s Renesas Electronics is seeking to collaborate with CG Power and Industrial Solutions, a subsidiary of the Murugappa Group, to establish a chip packaging plant.

Semiconductors have become a significant geopolitical battleground, with the United States, Japan, and China investing heavily in domestic chip capacity. India’s plan to establish itself as a semiconductor manufacturing hub includes attracting overseas chipmakers’ investments to catch up and save on high import costs while bolstering the local smartphone manufacturing industry.

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(Photo credit: Tata Group)