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Reliance is exploring a foray into semiconductor manufacturing in India. According to a Reuters reportthe Mukesh Ambani-led conglomerate is in talks with several foreign chipmakers for potential partners. The reputable publication quoted two anonymous sources close to the matter to exclusively break this news. These sources revealed to Reuters that while the company is exploring possibilities to manufacture chipsets in India, there is no concrete timeline set yet. Additionally, Reliance has yet to make a decision on whether to invest in semiconductor manufacturing or not.
Reliance Industry To Enter Semiconductor Manufacturing Industry
According to the report, Reliance Industries has been encouraged by the Indian government to consider a foray into semiconductor manufacturing. Earlier this year, the Indian Prime Minister, Narendra Modi, pitched India as the viable chipmaking hub for global chipmakers. The PM addressed his vision of making India a semiconductor hub at the country’s annual chip meet, SemiconIndia 2023. At the event, the PM addressed hundreds of experts from the semiconductor industry to promote India as the global hub for a trusted supply chain for chipsets.
Encouraged by the vision laid out by the top political leader in the country, the conglomerate is said to have had talks with several foreign chipmakers to identify a potential partner. According to the source close to the matter, while there is an intent to get into semiconductor manufacturing, there is no fixed timeline. The source also added that Reliance has yet to make a decision on whether they ultimately want to invest.
The sources also revealed that the company is aware of the benefits of getting into semiconductor manufacturing as it will address its own chip requirements. Notably, Reliance had to delay the launch of its super-affordable 4G smartphone, JioPhone Next, in partnership with Google due to a chip shortage. Moreover, the demand for semiconductors in India and globally is increasing.
Considering Reliance is one of the largest conglomerates in India and has worked with the government in the past, it is one of the best prospects to get into chipset manufacturing. However, finding a good technology partner is the critical point.
Currently, there are no semiconductor fabs in India due to the lack of skilled talent to handle chip manufacturing plants. Ministry of Electronics and IT Scientist ‘E’ Prashant Kumar said at the Electronics Sector Skill Council Foundation Day, that while there is a huge pool of semiconductor engineers in India, talent to handle semiconductor plants will have to come from overseas. Once the factories get going with foreign talent, gradually the resources will be developed in the country.