Tata Electronics Launches $3.2 Billion Semiconductor Plant in Assam, Expands India’s Chip Manufacturing Ambitions
Tata Electronics has commenced construction on a $3.2 billion semiconductor assembly plant in Jagiroad, Assam, marking a significant step in India’s growing semiconductor industry. The project, which is expected to become operational by 2025, will produce over 48 million chips daily using domestically developed technologies. With an anticipated creation of 27,000 jobs initially, the plant’s foundation stone was laid this month. Central government minister Ashwini Vaishnaw highlighted the broader economic impact of the plant, noting that it would spur downstream employment and upstream development across various sectors, including electric vehicles.
In parallel, Tata Electronics, in collaboration with Taiwan’s PSMC, is also establishing India’s first wafer fabrication unit in Dholera, Gujarat. The Dholera plant, with an investment of $10.8 billion, will have the capacity to produce 50,000 wafers per month. Expected to begin operations in December 2026, this plant is part of the Indian government’s broader strategy to boost semiconductor manufacturing, alongside two other semiconductor projects approved in February at a total cost of $15 billion. These initiatives underline India’s ambitions to become a global semiconductor hub.
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Editor’s Note: Tata Electronics has begun construction on a $3.2 billion semiconductor assembly plant in Jagiroad, Assam, set to produce over 48 million chips daily by 2025 and create 27,000 jobs. Simultaneously, Tata Electronics and Taiwan’s PSMC are developing India’s first wafer fabrication unit in Dholera, Gujarat, with a $10.8 billion investment and a planned operational start in December 2026. These projects, part of a broader $15 billion semiconductor strategy, reflect India’s ambitions to become a global hub for chip manufacturing.
India Set to Narrow Gap with China in MSCI Emerging Markets Index, Gains Global Investor Attention
India is poised to close the gap with China in the MSCI Emerging Markets Index, potentially increasing its weight by at least one percentage point following this week’s index review. Currently, China holds 22.33% of the benchmark compared to India’s 19.99%. A higher weighting for India would enhance its position as a key anchor for emerging market equities, attracting more global investment. Analysts suggest this shift could make the index more balanced, with India’s secular growth story receiving a larger allocation compared to more cyclical markets like China and Korea.
This development comes as China’s influence in the MSCI EM Index has diminished, down from a peak of 40% in 2020, amid regulatory crackdowns and economic challenges. Meanwhile, India has emerged as a favorite among investors, driven by strong economic growth, a rising middle class, and expanding manufacturing sector. As India’s stock market rises and new large listings increase, the gap between India and China in the MSCI Index is expected to narrow further by year-end, even as Taiwan also competes for a larger share in the index.
Editor’s Note: India is set to close the gap with China in the MSCI Emerging Markets Index, potentially increasing its weight by at least one percentage point in the upcoming review, enhancing its attractiveness to global investors. As China’s influence wanes due to regulatory and economic issues, India’s growing economic strength and expanding stock market are positioning it as a more prominent player in the index.
Polymatech Acquires Nisene Technology to Lead Semiconductor Industry Innovation
Polymatech Electronics, India’s leading semiconductor chip manufacturer, has acquired California-based Nisene Technology Group Inc. in a strategic move to bolster its position in advanced semiconductor fabrication and testing. The acquisition, made through Polymatech’s Singapore-based subsidiary, Artificial Electronics Intelligent Materials Pte Ltd., merges Nisene’s 50-year legacy in Silicon and Silicon Carbide wafer technology with Polymatech’s expertise in Sapphire-based semiconductors. This combination creates a unique multi-wafer technology, positioning Polymatech as a global leader in the semiconductor industry.
Polymatech plans to invest up to $500 million in its California facilities, focusing on the production of Silicon Carbide and Sapphire wafers, alongside high-performance CPUs and GPUs for PCs and mobile devices. The company aims to reach a top line of $5 billion by 2030, driven by its philosophy of doubling processing power and halving costs every 18 months. With the integration of Nisene’s innovative legacy, Polymatech is set to develop the next generation of semiconductors, enhancing human experiences through advancements like autonomous driving and machine learning.
Editor’s Note: Polymatech Electronics has acquired California-based Nisene Technology Group Inc., aiming to strengthen its position in advanced semiconductor fabrication and testing. This strategic acquisition merges Nisene’s expertise in Silicon and Silicon Carbide wafers with Polymatech’s Sapphire-based technology, creating a unique multi-wafer platform. Polymatech plans to invest up to $500 million in its California facilities to boost production and innovation, with a goal to reach a $5 billion top line by 2030.
Motherson Poised to Join Apple’s India Supply Chain with Rs 2,500-Crore Investment in Partnership with BIEL Crystal
The Motherson Group is set to enter Apple’s expanding supply chain in India through a strategic partnership with Hong Kong-based BIEL Crystal Manufactory, a major supplier of smartphone glass. This move would make Motherson, led by Vivek Chaand Sehgal, the second significant Indian company to become an Apple vendor, following Tata. The 51:49 joint venture, with Motherson holding the majority stake, plans to establish a new manufacturing facility in southern India, likely Tamil Nadu, with an investment of Rs 2,000-2,500 crore. The venture aims to achieve a turnover of Rs 8,000-8,500 crore within four to five years and is expected to launch operations by the July-September quarter.
This partnership highlights Apple’s ongoing efforts to diversify its production bases beyond China, driven by rising geopolitical tensions. As part of the agreement, BIEL Crystal will invest in Motherson’s subsidiary, Motherson Electronic Components Pvt Ltd (MECPL), and provide technical and technological support. The collaboration is set to enhance India’s role in Apple’s supply chain, with both Motherson and BIEL playing key roles in the production of glass screens for mobile devices, including iPhones.
Editor’s Note: Motherson Group is poised to join Apple’s supply chain in India through a Rs 2,500-crore investment in a joint venture with BIEL Crystal Manufactory. The new facility, set to be established in southern India, aims for a turnover of Rs 8,000-8,500 crore within four to five years and is expected to start operations by mid-2024. This partnership underscores Apple’s strategy to diversify its production away from China, with Motherson and BIEL focusing on manufacturing glass screens for iPhones and other devices.
Reliance Industries to Launch First Solar Giga-Factory by FY25, Aims for 100 GW Renewable Capacity by 2030
Reliance Industries Ltd is set to commission its first solar giga-factory by the end of the fiscal year 2024-25, marking a significant step in its journey towards achieving net zero carbon emissions by 2035. The factory, located in Jamnagar, Gujarat, will manufacture a range of solar PV components, including modules, cells, wafers, ingots, polysilicon, and glass. This project is part of Reliance’s broader $10 billion investment plan announced in 2021, aiming to establish 100 GW of renewable power capacity by 2030 through four giga factories dedicated to renewable energy equipment, battery storage, fuel cells, and hydrogen.
The company is also making strides in battery technology, targeting industrial-scale sodium-ion cell production by 2025 and a pilot lithium battery cell facility by 2026. In its annual report, Reliance emphasized the urgency of transitioning from fossil fuels to renewable energy to reduce costs and reliance on imports. With the solar giga-factory and a series of renewable projects on the horizon, Reliance is positioning itself as a global leader in the renewable energy sector, alongside giants like Enel, Iberdrola, and TotalEnergies.
Editor’s Note: Reliance Industries Ltd will launch its first solar giga-factory in Jamnagar, Gujarat, by the end of FY 2024-25, marking a major advance toward its net zero carbon emissions goal by 2035. The factory will produce various solar PV components as part of a $10 billion investment plan to reach 100 GW of renewable capacity by 2030. Alongside this, Reliance is also focusing on battery technology, with targets for sodium-ion cell production by 2025 and a pilot lithium battery cell facility by 2026, positioning itself as a global leader in renewable energy.
Government to Launch Incentives for Mobile Phone Parts Production, Aiming to Boost Local Manufacturing Ecosystem
The Indian government is planning to introduce a new incentive scheme targeting the production of 12 key component sub-assemblies used in mobile devices, as part of a broader effort to strengthen the local electronic components ecosystem. The incentives, linked to production, capital expenditure, and job creation, aim to increase India’s value addition in mobile manufacturing to 25-30% within the next seven years. This initiative is expected to set a new standard for the manufacturing sector, particularly as India seeks to capitalize on the global shift of the electronics supply chain from China.
India, now the second-largest mobile phone manufacturer globally, has seen significant growth in mobile phone production, with value terms jumping 21-fold over the past decade to Rs 4.1 lakh crore in FY24. While local value addition currently stands at 15%, the government and industry leaders are working closely to deepen this figure. The new incentive scheme is expected to be rolled out within nine to 12 months, potentially before the culmination of the current production-linked incentive (PLI) scheme for mobiles in March 2026. This move is anticipated to make India a world leader in the production of at least three of the targeted sub-assemblies, with a dominant position in several others.
Editor’s Note: The Indian government plans to introduce a new incentive scheme to boost local production of 12 key mobile phone components, aiming to raise India’s value addition in mobile manufacturing to 25-30% within seven years. The scheme, linked to production, capital expenditure, and job creation, will enhance India’s position as a major player in the global electronics supply chain, which is shifting from China. Expected to be implemented within the next 12 months, this initiative follows India’s significant growth in mobile phone production and seeks to deepen local value addition, potentially making India a leader in several critical sub-assemblies.