In a move that aligns with Prime Minister Narendra Modi's post-COVID-19 localization priority, Qualcomm (NASDAQ:QCOM) Inc., a leading US semiconductor manufacturer, is partnering with Indian conglomerate Tata Sons to enter the semiconductor packaging manufacturing sector. The announcement was made by Qualcomm's CFO, Akash Palkhiwala, at the Snapdragon Summit 2023.
Tata Sons is set to establish a semiconductor facility under India's Rs 76,000-crore (Rs 1 crore = $120,127) incentive program. This initiative, launched in 2021, aims to bolster the country's semiconductor and display manufacturing ecosystem.
As part of this collaboration, Qualcomm is prepared to source chips from local fabs should suppliers establish bases in India. The company also supports Indian startups through its investment arm Qualcomm Ventures and its Qualcomm Design in India Challenge (QDIC) program.
Simultaneously, Micron Technology (NASDAQ:MU) is constructing an outsourced semiconductor assembly facility in Gujarat, further strengthening India's position in the global chipset supply chain.
Additionally, the Qualcomm Mentorship Program, run jointly with the Ministry of Electronics and IT (MeitY), is aimed at enhancing growth in India's semiconductor sector. This partnership between Tata Sons and Qualcomm promises to bring significant investment and expertise to India, opening up new growth avenues.
Palkhiwala predicts a rapid expansion of India's semiconductor ecosystem as these initiatives take shape.
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