Citing geopolitical reasons and India’s developing ecosystem that is maturing, global giant TSMC snubs its manufacturing invitation.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading contract chipmaker, has turned down India’s proposal to set up fabrication plants in the country, according to a report by Taiwan-based DigiTimes. Similar offers from Singapore and Qatar were also declined.
TSMC reiterated its commitment to Taiwan as its core manufacturing base, citing a well-developed supply chain and geopolitical considerations for its expansion into the US, Japan, and Germany instead.
The decision is a setback for India’s efforts to attract global semiconductor giants as part of its broader push to become a major player in the electronics and chip manufacturing space.
While TSMC is investing $165 billion in the US to build multiple fabrication plants and R&D centres, it cited the lack of a mature ecosystem in India as a key barrier.
Despite the refusal, India is moving forward with its semiconductor ambitions. Union Minister Ashwini Vaishnaw recently announced the establishment of the country’s first chip design centres focused on developing advanced 3-nanometre chips.
These centres, located in Noida and Bengaluru, are being led by the India unit of Japanese chipmaker Renesas Electronics.
The government is also pushing initiatives like the Chips to Startup (C2S) Programme and the Design Linked Incentive (DLI) Scheme to support academic institutions and tech startups in the semiconductor space.
While India still faces challenges in building large-scale chip manufacturing capabilities, its focus on end-to-end chip design lays the groundwork for a strong domestic ecosystem.
These steps are viewed as foundational in achieving long-term self-reliance in critical technologies and enhancing India’s role in the global semiconductor value chain.
