New Delhi: Suppliers of Micron Technology, the memory and storage chip manufacturer that announced plans to build a semiconductor packaging plant in India, have called for extended government support, as they prepare to create footprints near the new facility.
Last month, Micron announced plans to build a semiconductor assembly, testing, marking, and packaging (ATMP) plant in Gujarat under the government’s $10 billion production-linked incentive scheme (PLI).
Global chip majors have been cautious in participating in the scheme due to the absence of local supply chains for chip manufacturing in India, which requires hundreds of raw materials.
While speaking at the Semicon India, 2023 global summit, suppliers of raw materials, services and utilities for semiconductor manufacturing revealed their plans to invest in Gujarat alongside Micron.
“We are now evaluating and preparing for another co-location investment with Micron. The key consideration is whether we can receive the same level of support from the local government. We would like the local agencies to view our project not as a standalone project, but as a part of the entire supply chain,” said Jeffery Chun, Simmtech, a supplier of IC packaging substrate to tier-1 semiconductor firms.
“Our co-location project is focused on our global customer’s movement. But at the same time, we understand that especially in India, there is a huge demand for our products printed circuit boards and IC substrates,” Chun said.
He added that his company’s co-location investments in China and Malaysia had attracted other investors to the region and strengthened the local supply chain.
Raja Vinay, business development lead at Air Liquide said: “We are keenly looking at the developments and rapid strides of the semiconductor sector and we will contribute to the development of this ecosystem.”
Chan Pin Chong, executive vice-president and general manager of Kulicke & Soffa (K&S), which supplies equipment solutions for chip packaging, said his company was willing to expand in India to support Micron’s upcoming plant.
“From a regulatory perspective, it’s important to understand we get the parts in and out in the region hubs. For example, when you run a 24×7 factory in Gujarat, we would like to see how we can see move-in parts and storage without being inhibited by import duties and regulatory things that can slow down the process,” he added.
