On March 24, 2025, Infineon Technologies officially opened its Global Competence Center (GCC) in Ahmedabad, Gujarat, which is its fifth R&D center in India. The center is located in Ahmedabad Financial City, Gujarat, and plans to recruit 500 engineers in the next five years, focusing on chip design, product software development, information technology, supply chain management and system application engineering. Currently, Infineon has more than 2,500 employees in India, with Bangalore being its largest R&D base.
Infineon sees India as a global innovation center, with a goal of more than 1 billion euros in sales by 2030, which is closely aligned with India's demand for automotive and industrial chips. The company is taking advantage of the Indian government's "Semiconductor Plan," which provides up to 50% financial subsidies, to accelerate its expansion. Infineon adopts the "localized R&D + outsourced manufacturing" model, focusing on the development of next-generation automotive and industrial control chips, while using Indian engineers to reduce costs. In terms of manufacturing, Infineon has reached a wafer supply agreement with Indian companies CDIL and Kaynes, which will be responsible for packaging, testing and sales, thus building a collaborative industry chain from design-packaging-sales. At present, Infineon has no plans to build its own wafer fab, but future strategies may be adjusted according to the maturity of the Indian supply chain.
In addition, Infineon is actively building a local ecosystem, cooperating with universities to cultivate semiconductor talents, and deepening the interaction between the government and enterprises in Gujarat through preferential policies, with the goal of reaching a market size of US$100 billion in India and occupying more than 10% of the market share by 2032. Infineon's strategy in India is an important part of its "global localization" strategy, which aims to gain competitive advantages in the booming semiconductor industry in India by setting up R&D centers, establishing local partnerships, and integrating policy resources, thereby helping India transform into a "manufacturing powerhouse."
Micron to build packaging and testing facility in India
In June 2023, Micron signed an agreement with the Indian government to invest $2.75 billion in the construction of a DRAM and NAND chip packaging and testing plant in Gujarat, and received 50% and 20% financial support from the Indian central government and state government respectively. The project is the first major international packaging initiative under India's "Semiconductor Plan".
The plant will focus on wafer cutting, packaging, testing and module production, and the first batch of products is expected to roll off the production line in the first half of 2025. Once fully operational, it is expected to create more than 5,000 high-tech jobs and become an important memory chip packaging center in South Asia. The plant is strategically located adjacent to Tata Electronics' wafer fab and Renesas Electronics' packaging project, forming a 50-kilometer-long industrial cluster and initially building a regional closed loop of "design-manufacturing-packaging". The plant will use mature processes of 40 nanometers and above to serve the local Indian market as well as the Southeast Asian and Middle Eastern markets, and is expected to reduce Micron's packaging costs in the Asia-Pacific region by 15% to 20%.
As the project progresses, Micron is promoting the localization of the supply chain, with Korean material suppliers investing jointly with the factory, and local Indian companies also cooperating in areas such as equipment maintenance and chemical supply. The US government is also providing support in terms of key raw materials. Although the project has faced a six-month delay due to infrastructure challenges in India, Micron remains optimistic about the market potential.
This move is the result of the Modi government's "Self-Reliant India" strategy and marks a breakthrough in India's chip manufacturing. As India plans to introduce a new round of semiconductor incentives worth more than $10 billion, Micron is evaluating the second phase of expansion plans, aiming to increase monthly packaging capacity to 150,000 wafers by 2030, covering advanced technologies. Micron's investment in India highlights India's determination and potential to accelerate its development into a new global chip manufacturing center through "policy leverage and international cooperation."
Post time: May-12-2025