NXP To Invest Over INR 8K Cr For R&D In Karnataka

NXP To Invest Significant Portion Of $1 Bn R&D Fund In Karnataka

SUMMARY

Karnataka Industries Minister MB Patil has said that semiconductor design major will invest a portion of the fund in the state over the next five years

Touting Karnataka's ecosystem for innovation and industry, Patil said that the state was playing a pivotal role in advancing global R&D capabilities

As per Inc42, the growing homegrown semiconductor market is projected to reach a size of $150 Bn by 2030

Karnataka Industries Minister MB Patil has said that semiconductor design major NXP will invest a significant portion of its INR 8,400 Cr (around $1 Bn) research and development (R&D) fund in the state over the next five years.

“Our recent roadshow in the Netherlands has yielded impressive results, including NXP’s pledge to invest a substantial portion of its $1 Bn R&D funds in Bengaluru over the next five years. This breakthrough underscores Karnataka’s unmatched ecosystem for innovation and industry, and its pivotal role in advancing global R&D capabilities,” said Patil in a post on X.

He made the comments during a meeting with NXP executive director Maurice Geraets in the Netherlands. Patil also participated in a roadshow in the European country to attract investments into the state ahead of the upcoming “Invest Karnataka 2025” summit.

The state has rolled out a red carpet for NXP as more and more players in the global semiconductor value chain explore India as a potential manufacturing base.

While Kaynes Semicon was previously reported to be working on establishing an outsourced semiconductor assembly and testing (OSAT) unit in Gujarat, the union cabinet approved Micron’s proposal for setting up a semiconductor unit in Gujarat in June last year. CG Power too is setting up a semiconductor unit in Sanand, Gujarat.

Besides, homegrown juggernaut Tata Electronics plans to set up semiconductor fabrication plants in Gujarat’s Dholera and Morigaon in Assam.

The growing interest in the country has largely come on the back of the Centre’s attractive production-linked-incentive (PLI) schemes as well as subsidies offered to the selected companies.

In 2021, the government launched an INR 76,000 Cr PLI scheme to support the homegrown semiconductor and display manufacturing ecosystem. Of this, INR 70,000 Cr (92%) has already been committed to fab companies.

On top of this, tailwinds such as ongoing geopolitical tensions between Beijing and Washington DC as well as the China+1 strategy adopted by corporations are expected to favour India’s semiconductor ecosystem.

As per Inc42, the homegrown semiconductor market is projected to reach a size of $150 Bn by 2030.