To this point, the India Semiconductor Mission (ISM) has accredited three OSAT (Outsourced Semiconductor Meeting and Take a look at) items together with the Tata Group’s Rs 27,120 crore facility in Assam, CG Energy and Industrial Options’ Rs 7,584 crore unit in addition to Kaynes Know-how India’s Rs 3,307 crore mission in Gujarat’s Sanand.
“Infineon is exploring the chance to create an OSAT presence in India,” one of many individuals cited above mentioned.
Final week, the German firm’s Asia-Pacific arm inked a cope with Mohali-based CDIL Semiconductors to produce naked semiconductor wafers to the Indian agency, which is able to course of and use it to assemble and bundle energy chipsets.
“Their (Infineon’s) partnership with CDIL may be seen as a transfer in direction of (establishing an OSAT in India),” one other particular person mentioned.
“They’re leaders in energy semiconductors however will slowly need to carry their experience in auto and different sectors. In an effort to do that, they might even increase the partnerships,” the particular person added.
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In response to ET’s queries, Infineon—which employs 2,500 individuals throughout 4 places within the nation, primarily in R&D—mentioned India is a vital market and innovation hub for the corporate.
“Regularly, we consider potential partnerships throughout the globe. Nevertheless, we will’t elaborate on potential future initiatives at this level. Presently, Infineon has no plans for its personal manufacturing actions within the nation,” it mentioned.
In the meantime, Arizona-based Onsemi, previously ON Semiconductor Company, can also be eyeing the India alternative, one other particular person informed ET. The corporate is a world provider of energy semiconductors and sensors.
“Onsemi could be very eager on an OSAT presence in India,” this particular person mentioned. “They see it as a method to leverage their model identify and have the Indian associate put within the cash for the ability whereas they supply technical experience. It turns into a win-win that manner. “
In response to ET’s queries, a consultant for Onsemi mentioned, “At the moment, we shouldn’t have any info to share.”
Infineon is one in all Germany’s largest semiconductor corporations which reported income of roughly $15 billion within the 2024 fiscal 12 months (ended Sept 30) with about 58,000 staff worldwide, as per their annual report.
In November final 12 months, in a letter to shareholders, the corporate had famous that “prospects’ structural demand for semiconductors is rising”.
“Even when the market as an entire is presently relatively weak, we have to take steps at present to make sure that we have now the aggressive manufacturing capability required for the medium and long run,” it acknowledged.
Trade watchers notice that in case of Onsemi, the American firm will want a strong associate as it’s going by a turbulent interval. The corporate just lately mentioned it’s going to lay off about 2,400 staff throughout enterprise divisions worldwide on account of restructuring. The corporate reported an annual income of $7 billion, a big drop from $8.2 billion in 2023.
Final week, the corporate made a bid to accumulate chip developer Allegro MicroSystems for $6.9 billion to assist open new sources of income.
Want for calibration
Semiconductor business specialists are of the view that the India semiconductor mission (ISM) ought to make data-based selections on what number of OSAT amenities it needs to subsidise.
Within the first part of ISM, fiscal help of fifty% of capital expenditure was granted to OSAT items. As well as, some states provide extra incentives, sweetening the deal additional.
“They (ISM) should remember the fact that the inputs to those OSATs within the type of processed wafers can be predominantly imported even by 2030. There’s additionally the query of whether or not Indian OSATs can seize sufficient orders to maintain them properly utilised,” mentioned business analyst Arun Mampazhy.
He pointed to a necessity for “readability on whether or not 50% incentives will proceed for all to-be-approved OSATs or whether or not there can be gradation”.
India ought to accord extra precedence to a different industrial high-volume silicon fab and one or two industrial compound semiconductor fabs over OSATs within the second part of the ISM coverage. “(Firms) like Infineon ought to be inspired extra in direction of that,” he added.
