Netherlands-based NXP is looking to support a rapidly developing electronics manufacturing ecosystem in India by encouraging semiconductor manufacturers to invest in the nation.
India's prime minister Narendra Modi has met with NXP Semiconductors CEO Kurt Sievers, with Modi tweeting that he was happy to discuss the transformative landscape in the world of semiconductors and innovation.
According to Business Today and The Economic Times, the meeting centered around policy frameworks, emerging technologies, enhancing India's value creation, and the nation's manufacturing capabilities and aspirations.
Sievers has expressed his support of a semiconductor manufacturing ecosystem in India. The Economic Times quoted Sievers saying that NXP started discussions with partners, adding that he will be very vocal and supportive to manufacturing partners to strongly consider India. However, he did not explicitly name the manufacturing partners that NXP had discussed.
Sievers further said that Modi and the Indian government's commitment to being one of the world's largest electronics manufacturing hubs underscores India's recognition of the electronics industry's strategic importance and growth potential.
As India's demand for electronics keeps growing fast, it is essential for the South Asian country to have a manufacturing ecosystem in place. Meanwhile, as geopolitical tensions rise, a diversified production also helps bring about a more resilient supply chain.
According to Sievers, in addition to India's strengthening infrastructure and education for the manufacturing ecosystem, geopolitical factors are playing an increasingly important role in determining the location of semiconductor manufacturing. India is an attractive choice in this regard.
According to the Ministry of Electronics and IT of India, the country envisions an electronics production of US$300 billion by fiscal 2026 (April 2025 to March 2026), up from US$87 billion in fiscal 2022. Due to the growth in demand for electronic products, Counterpoint Research estimated that India's semiconductor market opportunity would grow from US$27 billion in 2021 to US$64 billion in 2026.
On the other hand, Sievers said NXP has operated in India for more than 50 years and has R&D centers across India, with India's R&D engineers accounting for one-third of NXP's overall R&D workforce.
