Taiwan’s PSMC might partner with India to help set up semiconductor fabs

In yet another boost to India’s dream of becoming a semiconductor nation, now PSMC (Powerchip Semiconductor Manufacturing Corp) is ready to help India in setting fabs. The Chairman of Taiwan’s 3rd largest foundry, Huang Chongren, has stated that PSMC is ready to sign a cooperation agreement with the Indian government. Having experience in setting up factories in joint ventures with mainland China, PSMC might assist Indian and large local companies such as Vedanta or Tata in setting up factories and training talent for fabs.

Semiconductor analyst Arum Mampazhy told Business Today, “We will have to wait and see if PSMC picks a partner like Vedanta, who has already applied but has been criticised for not having a high-volume foundry as its partner or a new partner, like Tata, and apply when the scheme is reopened after decisions on the three first-round applications. Also, the possibilities of PSMC helping with compound semiconductor fabs and with the commercialisation of SCL cannot be ruled out. Though I hope such initiatives are in addition to supporting a new commercial Silicon-based fab in India,”

This news comes months after a Taiwanese delegation of semiconductor manufacturers visited Dholera smart city in Gujarat and the Semi-Conductor Laboratory (SCL) at Mohali in a four-day visit to identify potential sites for setting fabs in India. And PSMC officials were a part of this delegation.

Acknowledging semiconductors to be the new commodity on which the modern world depends, the Modi government has approved the India Semiconductor Scheme with a financial outlay of Rs 76,000 crore in December 2021. 

The scheme had received five proposals for semiconductor and display fabs till February 2022, which the government of India is still evaluating. Of these, the international semiconductor consortium ISMC’s application (a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel's Tower Semiconductor (of which Intel will complete acquisition soon) semiconductor scheme was the most credible proposal.

If PSMC partners with India, it will be the second foundry in business which has shown interest in India’s plan to become a semiconductor hub. “So far, PSMC is only the second high-volume manufacturing mainstream foundry who have publicly expressed interest in helping India with fabs. If it is indeed for commercial Silicon fabs, it will be good for India,” semiconductor analyst Arum Mampazhy told Business Today.

PSMC is Taiwan’s third-largest foundry and seventh-largest semiconductor foundry in the world, with three 12-inch and two 8-inch wafer labs.

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