Why an India-Taiwan mega chip deal could be a global save.

[soAsian]

Why an India-Taiwan mega chip deal could be a global save

India and Taiwan are apparently taking their relationship up a notch with an envisioned chip plant worth an estimated US$7.5 billion.

techhq.com

"India’s semiconductor demand is said to be valued at around US$24 billion and is expected to reach US$100 billion by 2025. The country’s semiconductor demand currently is entirely met through imports."

How come India don't try the China's approach by spending money to build up its own fab?

"Bloomberg noted that India is currently studying possible locations with adequate land, water, and manpower resources. India reportedly said it would provide financial support by fronting half of the capital expenditure needed from 2023, along with tax breaks and other incentives."

This look like a good deal for Taiwan. half of capex up front, tax breaks and other incentives including India govrt scouting out land for Taiwanese to build fab. The article didn't say what Taiwanese foundry will go to India. It gotta be TSMC, right?

 

[Daniel Nenni]

Good plan, I did not see India being successful here, building fabs for high volume manufacturing. It could be UMC, they have fabs in Taiwan, China, Singapore, and Japan. But you are right, it's probably TSMC. It's a little funny that TSMC is following the Globalfoundries plan of having foundries everywhere. Progress!

 

[hist78]

Why an India-Taiwan mega chip deal could be a global save

India and Taiwan are apparently taking their relationship up a notch with an envisioned chip plant worth an estimated US$7.5 billion.

techhq.com

"India’s semiconductor demand is said to be valued at around US$24 billion and is expected to reach US$100 billion by 2025. The country’s semiconductor demand currently is entirely met through imports."

How come India don't try the China's approach by spending money to build up its own fab?

"Bloomberg noted that India is currently studying possible locations with adequate land, water, and manpower resources. India reportedly said it would provide financial support by fronting half of the capital expenditure needed from 2023, along with tax breaks and other incentives."

This look like a good deal for Taiwan. half of capex up front, tax breaks and other incentives including India govrt scouting out land for Taiwanese to build fab. The article didn't say what Taiwanese foundry will go to India. It gotta be TSMC, right?

India did try to build a domestic semiconductor industry many years ago. This YouTube video will give you some historical perspective.

 

[hist78]

Good plan, I did not see India being successful here, building fabs for high volume manufacturing. It could be UMC, they have fabs in Taiwan, China, Singapore, and Japan. But you are right, it's probably TSMC. It's a little funny that TSMC is following the Globalfoundries plan of having foundries everywhere. Progress!

View attachment 541

If geopolitics, market and supply chain condition, and quicker profitability are the major consideration, Taiwan's Vanguard International Semiconductor and Powerchip Semiconductor can be strong contenders too.

And don't forget Foxconn who has big India operations and has been trying to expand its semiconductor business in recent years.

 

[tonyget]

India never have any success in capital-intensive sector . Because India government is cheap，always dream about MNCs come to their help.

 

[Paul2]

Good plan, I did not see India being successful here, building fabs for high volume manufacturing. It could be UMC, they have fabs in Taiwan, China, Singapore, and Japan. But you are right, it's probably TSMC. It's a little funny that TSMC is following the Globalfoundries plan of having foundries everywhere. Progress!

View attachment 541

Knowing India well, or best to say too well, I'd say it's a cooooooomplex country.

We had talks with Indian industry moguls just a tier below Ambanis, and Adanis for turnkey manufacturing businesses. Never ever we seen somebody ready to talk, and talk, update, and ping pong proposals for close to 3 years straight.

India had a long history of entering trade negotiations with almost every country on the planet, just to throw a giant surprise few years down the line, just minutes before the finish line (lookup India's conduct in RCEP.)

Asking India to become a successful in something capital intensive sounds almost as asking India to stop being India. Though, this may just be the thing about to be happen. Like him, or not, Modi is a giant change from any previous Indian government when it comes to conduct with business.

 

[Daniel Nenni]

TSMC will be in Taiwan, China, Japan, US, and India. That is truly amazing. More to follow I would expect. The silicon shield is growing.

 

[count]

India has a lot of strong engineering talent, and very competent at chemical and pharma manufacturing. I think it’s possible for them to be successful at semis if they can translate those strengths over.

On the other hand, corruption is still rampant and they don’t have the save sort of ant mentality in India as they do in East Asia.

 

[BillUdd]

India has a fatal flaw. They haven’t gotten over the effect of colonialism: too much subterfuge (cheating); always trying to get the best deal by hook or crook; penny wise and pound foolish. In summary, lacking self confidence and not able to fully commit. (I have been there 15 times, lived there almost 3 years)

 

[Daniel Nenni]

India is responsible for more than 10% of SemiWiki traffic. There is a huge amount of design work going on over there, absolutely.

 

[VCT]

I don't believe it. Most Taiwanese companies went to India and fail.
It's not just TSMC. It's hard for TSMC's supplier to be successful in India.

It will also be extremely difficult for TSMC to find enough Taiwanese (seed) engineers willing to move to India.
Most Taiwanese engineers have a family with young children. Culture wise, Taiwanese can easily get used to America or Japanese life. But probably not India life.
99% of Taiwanese wife will said no. (no offensive to India)