A Semiconductor delegation from Taiwan is visiting India, with Powerchip Semiconductor Manufacturing Corporation (PSMC) reportedly exploring opportunities in India. Still, the chip glut is slowing, even stopping further investment expansion from foundries.
Business Standard reported that Taiwan-based semiconductor companies, including PSMC and VIS, are visiting India, and Business Standard cited sources as saying that PSMC is exploring investment opportunities in India.
However, Martin Chiu, PSMC's executive vice-president, did not respond to Business Standard's email on PSMC's plan for India. Besides, according to a previous Liberty Times report in July, PSMC denied planning to partner with Tata Group to invest in India.
According to Business Standard, the Taiwan delegation may visit the semiconductor research institute SCL, the largest foundry in India in the 1980s but was destroyed in a fire and has not been able to make a comeback since then. The delegation is expected to visit smart city Dholera, Gujarat, and meet top executives from Tata Group and JSW Group.
India's Semicon India Program, announced in December 2021, has won support from Taiwan-based Foxconn, Israel-based Tower Semiconductor, and Singapore-based IGSS. Still, India left the application window open, hoping to attract more chipmakers to invest in India.
Nonetheless, the semiconductor boom in the last few years is transforming into a semiconductor over-supply. With declining global PC and smartphone shipments, fabless companies are reducing their orders, and companies are no longer over-booking, leading to even fewer orders for foundries.
It is noteworthy that semiconductor manufacturers are slowing down their investment plans and will be more cautious about potential investments in India. PSMC announced in the latest earnings conference that the Tongluo plant in Taiwan will not be put into operation in 2024 as previously planned.
