Indian State-Owned Chip Unit Seeks Partners for Modernization
India’s semiconductor fabrication unit at Haryana’s Greater Noida is looking for international partners, including US-based companies, to modernize its outdated chip production facilities. The facility, which is currently part of the state-owned Electronics Corporation of India (ECIL), plans to collaborate with a foreign firm through a joint venture, technology transfer, or licensing agreement.
The 10-year-old facility, which manufactures integrated circuits and radio frequency identification tags, is looking to adopt the latest manufacturing technology to improve efficiency and competitiveness. To do so, it seeks to partner with a company from the US, which has invited Expressions of Interest (EoI) from potential collaborators.
‘‘TCS, IBM, Applied Materials, and KLA are just a few of the major companies involved in the race to modernize the Factories,” said an official. TCS has expressed interest in revamping the facility’s technical capabilities, reportedly considering a partnership with the Government’s vehicle for technology transfer, DeitY. IBM has also shown interest, submitting a proposal for upgrading the factory, a source disclosed. The partnership could occur via DeitY’s Technology Acquisition and Development Payment (TAP) scheme, allowing for equity sale of the joint venture with a foreign partner for an initial direct payment of ₹300 crore.
The modernization drive spans multiple facets of the production line, including equipment, computer networks, training and learning processes, and air pollution control systems. Partner companies like Applied Materials and KLA will be collaborating to upgrade infrastructure, provide trained staff, and improve operating capability to adapt to the changed two-, away catalyst inventory landscape.
However, it’s unclear what significant roles other US-based companies, such as Applied Materials and KLA, will play in the modernization efforts.