AMD to invest $400 mn in India, Vedanta ties up new chips deal

US chip maker AMD pledged to invest $400 million in Bengaluru, and Vedanta said it has tapped a world-class tech firm for its proposed semiconductor factory on Friday, the first day of the annual Semicon India summit.

The big announcements came at the inaugural of the second edition of the semiconductor industry event held in Gandhinagar, Gujarat.

“We have already identified a world-class partner for semiconductors and are in the process of finalizing the agreement,” Vedanta chairman Anil Agarwal said on the opening day of the three-day global semiconductor industry summit. Agarwal said Gujarat will emerge as a semiconductor hub, adding that it “is the right place for creating the Silicon Valley of India.”

For its semiconductor unit, Vedanta is in talks with three firms for foundry, semiconductors, and packaging and testing, Mint reported, citing Agarwal on Friday. Earlier this month, Vedanta and Foxconn had called off their joint venture to manufacture semiconductors in India by “mutual agreement.”

Meanwhile, along with its investment plans, technology firm AMD said it plans to hire engineers for its Bengaluru plant. “AMD will invest about $400 million over the next five years. It will set up its largest R&D (research and development) centre in Bengaluru, which is expected to open by year-end. It also expects to add additional engineers by 2028-end,” Mark Papermaster, executive vice-president, and chief technology officer at AMD, said.

Foxconn chairman Young Liu, while pointing to the Taiwanese semiconductor industry’s ‘buffalo spirit’ – the ability to work hard without complaining – said that he’s found the same ‘spirit’ in India. Referring to the ‘high say-do ratio of the Indian government, Liu underlined the importance of trust and working together to overcome challenges, just like Taiwan did many years ago, and vowed his country’s support to boost local manufacturing of semiconductors.

In his address, Prime Minister Narendra Modi highlighted the progress in the nation’s technology ecosystem, saying “More than 200 mobile manufacturing units operate in India, up from just two units before 2014.” Modi said India’s electronic manufacturing sector, valued at under $30 billion in 2014, now exceeds $100 billion. Moreover, he said the export of electronics and mobile devices has doubled in the past two years.

“Indian aspirations will propel the Fourth Industrial Revolution, much like the American dream fueled its Industrial Revolution,” said Modi. He underscored the burgeoning neo-middle class, declining poverty rates, affordable data, enhanced digital infrastructure, and increased use of smart technology across various sectors, including health, agriculture, and logistics.

The fourth Industrial Revolution (or Industry 4.0) is about combining smart technology and manufacturing, leading to more automation, data exchange, and efficient systems. With skilled Indian engineers and designers being seen as a potent force in the sector, Modi nudged international entities to manufacture in India, not just for the Indian market but also for the global market.

Modi emphasized the importance of gatherings such as Semicon India 2023, likening them to “software updates” where industry leaders exchange insights and ideas to further enrich and synchronize their relationships.

Semiconductor Equipment and Materials International (Semi) president and chief executive officer (CEO) Ajit Minocha said that for the first time in India’s history, “geopolitics, domestic politics, and private secret capacities are aligned in India’s favor to become a player in semiconductor production.”

Semiconductor Products Group president Prabu Raja said, “We believe this is India’s time to shine. It’s time for collaborative partnerships.”

Micron Technology president and CEO Sanjay Mehrotra said the company’s semiconductor assembly and test facility for memory in Gujarat will create nearly 15,000 jobs in the coming years.

Cadence president and CEO Anirudh Devgan also attended the second edition of the annual industry event.