India Indian Economy + Infra Archive

[Afif]

These comparisons are a bit silly. For exmaple, if we add Apple and Amazon's market cap/net worth, it is gonna be larger than the economy of world's largest country. But nobody seriously thinks this way.

Because, total wealth in India reached $32,601 billion in 2018, followed by Pakistan ($3,476 billion), Bangladesh. ($3,109 billion)

I don't know how it is today, but you get an Idea.

 

[dronie]

These comparisons are a bit silly. For exmaple, if we add Apple and Amazon's market cap/net worth, it is gonna be larger than the economy of world's largest country. But nobody seriously thinks this way.

Because, total wealth in India reached $32,601 billion in 2018, followed by Pakistan ($3,476 billion), Bangladesh. ($3,109 billion)

I don't know how it is today, but you get an Idea.

Its just the Indian way of rubbing it with some salt into them or as some may call it hit them in the balls when they are down.As @Jammer pointed out pakistanis have given up on their GDP a long time back.

 

[dronie]

https://twitter.com/i/web/status/1763173824210800959

Hell yeah

 

[Gessler]

Giant leap for India Semiconductor Mission: Cabinet approves three more semiconductor units worth a combined $15 Billion​

Posted On: 29 FEB 2024 3:39PM by PIB Delhi​

The Union Cabinet chaired by Prime Minister Narendra Modi approved the establishment of three semiconductor units under ‘Development of Semiconductors and Display Manufacturing Ecosystems in India. All three units will start construction within next 100 days.

The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified on 21.12.2021 with a total outlay of Rs. 76,000 crore. In June, 2023, the Union Cabinet had approved the proposal of Micron for setting up a semiconductor unit in Sanand, Gujarat. Construction of this unit is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the unit.

The three semiconductor units approved today are:​

1. Semiconductor Fab with 50,000 wfsm capacity:

Tata Electronics Private Limited (“TEPL”) will set up a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan.

Investment: This fab will be constructed in Dholera, Gujarat. Investment in this fab will be Rs.91,000 crore ($10.9 billion).

Technology partner: PSMC is renowned for its expertise in logic and memory foundry segments. PSMC has 6 semiconductor foundries in Taiwan.

Capacity: 50,000 wafer starts per month (WSPM)

Segments covered:

• High performance compute chips with 28 nm technology
• Power management chips for electric vehicles (EV), telecom, defence, automotive, consumer electronics, display, power electronics, etc. Power management chips are high voltage, high current applications.

2. Semiconductor ATMP unit in Assam:​

Tata Semiconductor Assembly and Test Pvt Ltd (“TSAT”) will set up a semiconductor unit in Morigaon, Assam.

Investment: This unit will be set up with an investment of Rs.27,000 crore ($3.2 billion).

Technology: TSAT semiconductor is developing indigenous advanced semiconductor packaging technologies including flip chip and ISIP (integrated system in package) technologies.

Capacity: 48 million per day

Segments covered:

• Automotive
• Electric vehicles
• Consumer electronics
• Telecom
• Mobile phones, etc.

3. Semiconductor ATMP unit for specialized chips:​

CG Power, in partnership with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand will set up a semiconductor unit in Sanand, Gujarat.

Investment: This unit will be set up with an investment of Rs.7,600 crore ($0.9 billion).

Technology partner: Renesas is a leading semiconductor company focussed on specialised chips. It operates 12 semiconductor facilities and is an important player in microcontrollers, analog, power, and System on Chip (‘SoC)’ products.

Segments covered: The CG power semiconductor unit will manufacture chips for consumer, industrial, automotive and power applications.

Capacity: 15 million per day

Strategic importance of these units:​

• Within a very short time, India Semiconductor Mission has achieved four big successes. With these units, the semiconductor ecosystem will get established in India.
• India already has deep capabilities in chip design. With these units, our country will develop capabilities in chip fabrication.
• Advanced packaging technologies will be indigenously developed in India with today’s announcement.

Employment potential:​

• These units will generate direct employment of 20 thousand advanced technology jobs and about 60 thousand indirect jobs.
• These units will accelerate employment creation in downstream automotive, electronics manufacturing, telecom manufacturing, industrial manufacturing, and other semiconductor consuming industries.

Giant leap for India Semiconductor Mission: Cabinet approves three more semiconductor units

The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the establishment of three s

pib.gov.in

@Nilgiri

I see the potential to source most of Tata Motors' chip needs (and perhaps even that of some JLR models) from this plant. Not to mention the other makers & exports. Besides defence & strategic needs.

Cannot put in words how important & significant this is going to be.

I'm surprised we're even getting up to 28nm, I did not expect anything newer than 40nm to make it but here we are!

 

[Afif]

Do we know the extent of ToT ? Will the design of chips be done by PSMC or in house by TEPL?

 

[Gessler]

Do we know the extent of ToT ?

Don't know yet, things will become clearer with time.

Will the design of chips be done by PSMC or in house by TEPL?

PSMC isn't so much into design (they do some designs, but that's not their focus) - they are a fab, they take designs from customers & just build the chips.

Once the fab is in place, they'll be building chips designed by any number of companies, for any number of applications - Indian & foreign. There's lots of chip-design firms in the country so I'm guessing their hands will be full.

 

[Gessler]

Looks like there's more in the pipeline...watch this space​

Govt examining $11 billion semiconductor fab proposal by Israel's Tower: Rajeev Chandrasekhar​

Apart from the three proposals that were approved by the Union Cabinet on February 29, Chandrasekhar also said that the government is examining a $11 billion proposal from Israel's Tower Semiconductor, whose plans include building a fab that can churn 80,000 wafers per month​

On a day when the Union Cabinet approved three major semiconductor proposals, Minister of State for Electronics and Information Technology Rajeev Chandrasekhar said that the government is also examining a $11 billion fab proposal by Israel's Tower Semiconductor.

On February 29, the Union Cabinet approved three projects under the $10 billion capex linked incentive scheme of the government on February 29 worth Rs 1.26 lakh crore of investments.

"The one proposal that did not go to the Cabinet today was Tower. It (Tower's) is a very important proposal that the government is examining today and hopes to successfully get approved. It is a slightly more complex proposal because they looked at a longer period of build out. It's a much larger fab that they are building. And it is one of the few foundry-led investments that is coming into the country," Chandrasekhar said in a press briefing.

"It is a complex proposal in the sense that they are a foundry company, and therefore it is not a classic JV (joint venture) kind of a model. So they want to do 100 per cent investment, with the option of an Indian partner later on," he said.

"They want to do this as a significant build out, an 80,000 wafers per month fab. Their vision for this is a much larger fab than simply a 40,000 wafer, which therefore makes it something bigger than what a six -year scheme can deal with. So it is much more different. It's a much larger project," he said, while talking about the importance of the Tower Semiconductor proposal.

In total, Chandrasekhar said, the government has received proposals worth a total of $26 billion in the semiconductor sector. This includes, Chandraeskhar said, the three semiconductor proposals that was approved on February 29, Micron which was given green light last year, and those that are under consideration. The figure does not include proposals made in the display segment and those that have been rejected, he added.

The proposals which Union Cabinet approved on February 29 include, India’s first semiconductor fabrication plant or fab to be set up by Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) in Gujarat’s Dholera at a projected cost of Rs 91,000 crore.

Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will set up a semiconductor unit in Morigaon, Assam. Lastly, CG Power, in partnership with Renesas Electronics Corp., Japan and Stars Microelectronics, Thailand will set up a semiconductor assembly, testing, marking and packaging unit in Sanand, Gujarat.

Speaking on the importance of these investments that were approved, Chandrasekhar said, "If you look at the policy, we said, it (proposals) have to be a company who's operating and managing a foundry currently or a company that has a licensing agreement from a foundry. Essentially, today what we are seeing is, all of these proposals are essentially foundry partners."

"So Renesas is a semiconductor company, Micron is a semiconductor company, PSMC is a semiconductor company, Tower is a semiconductor company. And so none of these are really licensed third party plants. This is certainly consistent with what we thought in the early days," Chandrasekhar said.

The Union minister estimates that India will become the largest semiconductor consumer after China and North America. "China's consumption of semiconductor last year, I may be wrong, may not be precise, is about $600 billion. We estimated two years ago that we will be at about $110 billion (of semiconductors) by 2028," the minister said.

Govt examining $11 billion semiconductor fab proposal by Israel's Tower: Rajeev Chandrasekhar

Apart from the three proposals that were approved by the Union Cabinet on February 29, Chandrasekhar also said that the government is examining a $11 billion proposal from Israel's Tower Semiconductor, whose plans include building a fab that can churn 80,000 wafers per month

www.moneycontrol.com

Tower's most advanced nodes (as per their website) are in the ~45nm range, it seems India really wants to grab a significant chunk of the middle-range fab market. That mostly means Automotive, networking & IoT applications.

 

[Gessler]

More news on the semiconductor front over the week, this is wrt Design...

Wipro wins deal to design Intel’s latest chips​

Large-cap IT services firm Wipro Ltd on Wednesday disclosed a new deal with US chipmaker, Intel Foundry. The deal with the chip development division of Intel will further see Wipro engineers work on Intel’s latest ‘18A’ chip node that will be used in cutting-edge consumer electronics devices next year onward.

...In an exchange filing, Wipro said that its deal with Intel will cater to chip designs for clients across automotive, industrial and telecommunications verticals, and be used for “generative AI-driven designs". The collaborative chip design project is a part of Wipro’s $1-billion ‘ai360’ ecosystem of services, with which the IT services firm will seek to target new clients for AI-first services, going forward.

...The ’18A’ node is significant, since this denotes the latest technology from Intel’s chips, which Wipro engineers will also help manufacture and custom-design.

Wipro wins deal to design Intel’s latest chips

Though the exact size of the deal is not disclosed, the deal will see Wipro engineers work on Intel’s latest ‘18A’ chip node that will be used in cutting-edge consumer electronics devices next year onward.

www.livemint.com

++++
​

L&T starts building team for semiconductor chip design​

Larsen & Toubro (L&T) is building a team for its semiconductor chip design business, as it looks to foray into fabless semiconductor chip design and product ownership.

...J.D. Patil said LTST isn’t looking to be a mass manufacturer of processor or memory chips. Instead, it will play in the highly-engineered category. “This is not a space where everybody can compete. LTST will focus on customised chips,” he said. It will be a game of ASICs (Application Specific Integrated Circuit) and the firm will offer complete solutions. “A chip will be able to do what a full rack can achieve,” he said.

While the chip manufacturing will be outsourced, the design will be done in-house, Patil said. The chip design would look at the automotive and industrial chip segments.

https://www.financialexpress.com/business/industry-lampt-starts-building-team-for-semiconductor-chip-design-3407149/

++++​

I expect to see more industrial enterprises with even a bit of capital in hand like L&T to venture into chip-design to take care of their own customized needs going forward. Especially those enterprises that deal in strategic sectors...so fully expect Godrej to follow suit at some point (unless they're already doing it?).

 

[Afif]

@Gessler How much Indian chip industry earns every year in total?

 

[Gessler]

@Gessler How much Indian chip industry earns every year in total?

Semiconductors - India | Statista Market Forecast

The Semiconductors market in India is projected to grow by 11.60% (2024-2029) resulting in a market volume of US$13.31bn in 2029.

www.statista.com

Not sure what you mean by 'earn' but the whole segment has ~$8 billion revenue as of 2023-24.

 

[Nilgiri]

Semiconductors - India | Statista Market Forecast

The Semiconductors market in India is projected to grow by 11.60% (2024-2029) resulting in a market volume of US$13.31bn in 2029.

www.statista.com

Not sure what you mean by 'earn' but the whole segment has ~$8 billion revenue as of 2023-24.

8 billion is too low, the revenue was around 27 billion USD in 2022:

India emerging as major player in the semiconductor manufacturing industry - ET Auto

Semiconductor Manufacturing: "On the demand side, growth of the semiconductor industry in India is expected to be driven by the increasing semiconductor content across consumer electronics and automobiles including EVs and, increasing demand for smartphones as the number of smartphones in India...

auto.economictimes.indiatimes.com

About 34 billion USD last year:

India Semiconductor Market Size, Trends, Share 2032 - CMI

The India Semiconductor Market size was valued at $34.3 Billion in 2023 and it will grow $100.2 Billion at a CAGR of 20.1% by 2023 to 2032 - CMI

www.custommarketinsights.com

Growth trajectory:

India - Semiconductor and Electronics Industry

India offers opportunities for U.S. companies in semiconductor and electronics industry.

www.trade.gov

 

[Nilgiri]

These comparisons are a bit silly. For exmaple, if we add Apple and Amazon's market cap/net worth, it is gonna be larger than the economy of world's largest country. But nobody seriously thinks this way.

Because, total wealth in India reached $32,601 billion in 2018, followed by Pakistan ($3,476 billion), Bangladesh. ($3,109 billion)

I don't know how it is today, but you get an Idea.

The problem for Pakistan and BD, is if their wealth levels are estimated by credit suisse as say ~10% of India, their market caps are nowhere near 10% of India.

i.e rather than 450 billion USD, they are both in the 30 - 50 billion dollar range recently.

There is a great dissonance here....especially in leveraging expansion into modern sectors.

 

[Afif]

8 billion is too low, the revenue was around 27 billion USD in 2022:

India emerging as major player in the semiconductor manufacturing industry - ET Auto

Semiconductor Manufacturing: "On the demand side, growth of the semiconductor industry in India is expected to be driven by the increasing semiconductor content across consumer electronics and automobiles including EVs and, increasing demand for smartphones as the number of smartphones in India...

auto.economictimes.indiatimes.com

About 34 billion USD last year:

India Semiconductor Market Size, Trends, Share 2032 - CMI

The India Semiconductor Market size was valued at $34.3 Billion in 2023 and it will grow $100.2 Billion at a CAGR of 20.1% by 2023 to 2032 - CMI

www.custommarketinsights.com

Growth trajectory:

India - Semiconductor and Electronics Industry

India offers opportunities for U.S. companies in semiconductor and electronics industry.

www.trade.gov

Where does that much money comes from? Wihtout any previous fab or extensive manufacturing? I assume this would be the first fab in India?

 

[Afif]

i.e rather than 450 billion USD, they are both in the 30 - 50 billion dollar range recently.

Are you saying BD's economy is $30-50 billions currently? Come on @Nilgiri you are smarter than that.

 

[Nilgiri]

Are you saying BD's economy is $30-50 billions currently? Come on @Nilgiri you are smarter than that.

No their market cap. Clearly mentioned by their stock market exchange websites.

 

[Nilgiri]

Where does that much money comes from?

Tied into things like the market cap. Its why I bring it up again.

India's financial markets growing robustness and volume bring things to leverage for investment and capital.

 

[CallSignMaverick]

These comparisons are a bit silly. For exmaple, if we add Apple and Amazon's market cap/net worth, it is gonna be larger than the economy of world's largest country. But nobody seriously thinks this way.

Because, total wealth in India reached $32,601 billion in 2018, followed by Pakistan ($3,476 billion), Bangladesh. ($3,109 billion)

I don't know how it is today, but you get an Idea.

What is the source? I found credit suisse data...

List of countries by total wealth - Wikipedia

en.wikipedia.org

India might become 3rd wealthiest in 2-3 years.

 

[Gessler]

Tatas' investments in new ventures to cross $120 billion in coming years

Long-term capital infusion approvals have already been secured by Tata Sons' board, officials revealed. The conglomerate had announced plans in the final quarter of 2022 to invest $90 billion in emerging industries by 2027, including mobile components, semiconductors, electric vehicles...

economictimes.indiatimes.com

India 'easily' the fastest growing economy, IMF executive director says, as GDP growth blows past estimates

India's economy grew much faster than expected in the October to December quarter, data showed late on Thursday.

www.cnbc.com

 

[dronie]

https://twitter.com/i/web/status/1764992801870409915

So a semi HSR train is on the works

 

[dronie]

https://twitter.com/i/web/status/1764992801870409915

So a semi HSR train is on the works

Sad new is that aluminium rakes that were to be manufactured by Alstom is now cancelled.