As Tata Electronics is set to establish India’s first semiconductor fabrication facility in Dholera, Gujarat, in partnership with Powerchip Semiconductor Manufacturing Corporation, Lam Research India plans to open an office in the region to provide on-site support, according to a senior company executive, as reported by The Economic Times.
Lam Research India is the local arm of US-based supplier of wafer fabrication equipment, which aims to enhance its manufacturing capacity by 50,000 wafers per month. The company’s virtual fab platform, ‘Semiverse’, is already used by fabs and customers globally to simulate fabrication processes.
“We have engineering centers in the US (California and Oregon), Austria (Villach), and India (Bengaluru),” said Rangesh Raghavan, corporate vice president and general manager of Lam Research India, in an interview with The Economic Times. “Our technology hubs are strategically located near our customers worldwide. Once Tata’s fab in Dholera is operational, we will establish a presence there to provide immediate support. It won’t be managed remotely from Bengaluru, as proximity is crucial for customer service,” he said.
Semiconductor fabrication at Lam Research Corp
Lam Research Corporation, an American company, supplies wafer-fabrication equipment and related services to the semiconductor industry. Its products are primarily used in front-end wafer processing, which encompasses the creation of active semiconductor components like transistors and capacitors, as well as their wiring (interconnects).
Boom in India’s semiconductor industry
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The semiconductor market in India is currently valued at $23.2 billion. It is projected to grow at a compound annual growth rate of 17.10 per cent, to reach $80.3 billion by 2028. The growth is fueled by the surging demand for electronics, smart devices, and advanced technologies like artificial intelligence (AI), all of which heavily depend on sophisticated semiconductor chips.
India’s 2020 Semiconductor Policy aims to reduce import dependency and bolster domestic semiconductor design and manufacturing. The policy focuses on two key objectives: Building semiconductor design capabilities and expanding manufacturing capacity.
The Indian government offers financial incentives, including the Production Linked Incentive (PLI) Scheme, to attract semiconductor manufacturers and establish domestic chip fabrication facilities, aiming to build a self-reliant ecosystem for both local and global markets.