Latest news with #ATMP
Time of India
3 days ago
- Business
- Time of India
Tata Electronics eyes Malaysia foray via chip fab acquisition
Tata Electronics is in talks with several global semiconductor companies including X-Fab , DNeX and Globetronics to acquire a fabrication or outsourced semiconductor assembly and test (OSAT) plant in Malaysia, according to people in the know. The move is aimed at bolstering the Tata Group company's knowledge and talent base before entering the semiconductor assembly and packaging business in India. KC Ang, who was appointed president and head of Tata Semiconductor Manufacturing in April this year, is driving these acquisition efforts, the people said. 'Globetronics and DNeX's SilTerra facility are among the front runners to be acquired by Tata Electronics,' said one of the people. Tata Electronics is investing more than Rs 91,000 crore to set up a semiconductor fab unit at Dholera, Gujarat, and Rs 27,000 crore in an OSAT facility at Assam's Morigaon. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký "Running a fab is not going to be simple and Tata Electronics is aware of that," a second person said. ETtech Live Events "These potential acquisitions are being explored in Malaysia because it is one of the most economical options and talks have been going on with different players since April this year,' this person said. 'For the Tatas, it represents an opportunity to get the knowhow on how to run a fab or advanced packaging facility while also providing a training ground for Indian talent to learn how to run these high-tech facilities." Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Queries sent to Tata Electronics, X-Fab, DNeX and Globetronics remained unanswered as of press time Monday. Semicon hub Malaysia's expertise in assembly, testing, marking and packaging (ATMP) along with its mature ecosystem, abundant skilled workforce, robust supply chain and government support make it a preferred destination, according to analysts. "If Tata were to have a partnership or presence in Malaysia, it would enable Tata to develop expertise in ATMP, and it would complement the wafer fabrication and OSAT (operations) in India," Counterpoint Research senior analyst Parv Sharma said. 'It would also de-risk Tata from current semiconductor tariffs and provide a risk-free supply chain to serve a wider customer base globally," he added. Also, the Malaysian government's National Semiconductor Strategy, announced in May 2024, offers a significant incentive structure to attract investments. Indian companies are aiming to acquire manufacturing grade technology (MGT) from Malaysia for OSAT projects in particular, as it is the longstanding hub for both legacy and advanced packaging. "MGT can only come from an established player in the semiconductor industry who has IP defensibility for its technology and has the legal rights to license it to India," consultancy firm Fab Economics' CEO Danish Faruqui said. Malaysia holds 13% of the global market for chip packaging, assembly and testing services, as per a February 18 report by the Malaysian Investment Development Authority. Ripe for acquisition Typically, semiconductor businesses that are financially stressed and are looking to get a boost by licensing technology and/or expanding packaging capacity with new partners, are the most preferred targets by Indian players. "Globetronics, an OSAT player from Penang, Malaysia, has suffered multiple financial blows as recently as in 2024,' said Faruqui. Key public and private stakeholders had rolled back their positions in the company, necessitating boardroom changes and strategies for new partnerships and revenue streams, he added. As per Fab Economics, DNeX's SilTerra facility in Kulim is also being deemed a 'lucrative target' for Indian players for low-cost, high-fidelity technology licensing on the fabrication side. SilTerra is a semiconductor wafer foundry offering fabrication and design support services for integrated chips in various technologies. DNeX acquired a 60% stake in SilTerra in 2021 while the remaining 40% was acquired by Beijing-based Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Centre (CGP Fund), which is a Chinese investment fund focused on the semiconductor industry. The total acquisition cost was 273 million Malaysian ringgit (about $64 million now). X-Fab is a German specialty foundry group that has six wafer fabs located in Malaysia, Germany, France and the US. Located in Kuching, the capital city of Sarawak, the X-Fab facility in Malaysia manufactures wafers on modular CMOS technologies in geometries ranging from 350 nm to 180 nm. CMOS (Complementary Metal-Oxide-Semiconductor) is a type of technology used in computer processors, memory chips, and other electronic components.
India.com
4 days ago
- Business
- India.com
India set to rule semiconductor sector as Modi govt..., companies to benefit most include..., not Mukesh Ambani's Reliance, Narayana Murthy's Infosys
(Representational image: New Delhi: India's semiconductor dream is now entering a new phase. The government has strengthened its goals under 'SemiCon 2.0′, aiming to achieve a 5% share in global chip production by 2030. In 2021, India announced an incentive package of $10 billion (approximately Rs 83,000 crore) to develop its semiconductor ecosystem. This fund has begun to be allocated, and five projects related to chip fabrication, OSAT, and ATMP have been approved under this scheme. The government's goal is to attract global chip companies while also promoting domestic players. If everything goes according to plan, significant opportunities could open up for investors in India's semiconductor value chain. 1. IZMO is known for interactive marketing and visualization technology in the automotive sector, but it is now also making its mark in semiconductor packaging. IZMO's subsidiary, Izmo Microsystems, provides 3D packaging and System-in-Package (SiP) solutions. Its 10+ global clients include the automotive, aerospace, and renewable energy sectors. The company is investing in semiconductor packaging. IZMO is also working on new products like AI, EV software, and virtual retailing. 2. MosChip Technologies is an important part of India's semiconductor design ecosystem. With over 20 years of experience, it specializes in ASIC, SoC, and VLSI design. It is taking advantage of the government's Design Linked Incentive (DLI) scheme. In July 2024, an order worth Rs 50,000 crore was received from C-DAC to design an HPC chip based on 5-nanometer technology. In October 2024, it joined Renesas' AI/ML design partner network. It is focusing on RISC-V architecture and HPC processor development. 3. Cyient, with over 30 years of experience in engineering and technology solutions, is now focusing on semiconductor design. Its new subsidiary, Cyient Semiconductors, is working on chip design and ASIC development. It works with 300+ global clients. In FY25, DET business revenue was $688 million. 4. HCL Technologies, one of India's top IT companies, is now venturing into semiconductor design and testing. It recorded a growth of 5.5% in the ER&D (Engineering Research and Development) segment in FY25. Partnerships with companies like NVIDIA and Google. The company's revenue in FY25 was 13.84 billion dollars. 5. Tata Electronics, a Tata Group company, is constructing India's first commercial semiconductor fabrication plant (Dholera, Gujarat). This 91,000 crore rupee project will produce 50,000 wafers per month. Focus on OSAT (Assembly, Testing) and foundry services. Plans for expansion with global partnerships.
Hindustan Times
14-05-2025
- Business
- Hindustan Times
Cabinet clears HCL-Foxconn semiconductor facility in Uttar Pradesh's Jewar
NEW DELHI: The Union Cabinet on Wednesday approved a semiconductor manufacturing facility to be built by Indian tech major HCL and Taiwanese electronics manufacturer Foxconn under the India Semiconductor Mission (ISM). IT minister Ashwini Vaishnaw, who announced the cabinet decision on Wednesday, said the facility will be located near Jewar airport, an 'up and coming area' within the Yamuna Expressway Industrial Development Authority (YEIDA) region. This is the sixth semiconductor unit being planned in the country under ISM and will begin commercial production in 2027. It will make Outsourced Semiconductor Assembly and Test (OSAT) for display driver integrated circuits (ICs). This is Foxconn's second attempt to set up a semiconductor unit under the ISM. In 2023, the Taiwan-based company had teamed up with Vedanta, but the partnership ultimately fell through. 'HCL has a very long history of manufacturing electronics and computers,' the minister said, adding that the new unit will use wafer-level packaging technology, specifically tailored for assembling display driver chips. 'Once the display driver ICs get properly assembled here, then the display panel plant will also come to India,' Vaishnaw said. The facility is expected to cost ₹3,706. It wasn't disclosed how this investment will be split between HCL and Foxconn. The two companies could not be reached for comments. The facility will assemble display driver chips, which are a small but important part in electronic devices that control how images, videos, and graphics appear on a screen. They are used in devices such as phones, laptops, and computers. 'The plant is designed for 20,000 wafers per month. The design output capacity is 36 million units per month,' a government statement said. The minister said the Foxconn-HCL facility was expected to cater to 40% of India's domestic demand for display driver chips, and support Foxconn's global supply chain needs. Over the past decade, the country's electronics manufacturing output has grown five-fold, according to government data. With the addition of this unit under the ISM, the government moves a step closer to its goal of increasing value addition in electronics from the current 20% to over 35% by 2030, a target the minister has repeated on multiple occasions. He did not indicate when the next phase of the mission, dubbed 'ISM 2.0' would be launched, insisting that the government's focus was on proper execution of current projects. ISM was launched in 2021 with a total outlay of ₹76,000 crore. The six semiconductor units under ISM are entitled for central and state government subsidies for development of semiconductors and display manufacturing ecosystem in India. The other five units under ISM include three in Gujarat's Sanand: Micron's ATMP (Assembly, Testing, Marking, and Packaging) Unit, CG Power-Renesas' ATMP Unit and Kaynes Semicon's OSAT unit. The other two are Tata-PSMC Fab unit in Gujarat's Dholera, which is the only fabrication plant in India, and Tata ATMP Unit in Assam's Morigaon.
