South Korean PCB manufacturer announced its intention to set up a facility in Gujarat as Micron's memory ATMP facility continues to draw semiconductor suppliers to India.
Multiple media, including the Printed Circuit Design and Fab, Deccan Herald, and Outlook India, reported that South Korean-based PCB manufacturer Simmtech planned to invest INR12.5 billion (US$150.5 million) in the Indian state of Gujarat. Simmtech made its intentions known at the Vibrant Gujarat Global Summit.
Simmtech CEO Jeffery Chun was quoted saying that the company is looking forward to further supporting its customers both in India and globally. It will further enable India's domestic players to be part of the global supply chain ecosystem, he added.
Simmtech's investment followed Micron's US$2.75 billion ATMP investment in Gujarat. The investment may help bring more companies in the chip supply chain to come to the state.
According to Bloomberg data, Micron is the third-largest customer for Simmtech after Samsung Electronics and SK Hynix. CNBCTV18 quoted Micron CEO Sanjay Mehrotra saying that its Gujarat facility is expected to be operational by early 2025, generating 5,000 direct jobs and 15,000 indirect jobs.
Micron also signed an MoU with the New Age Makers Institute of Technology. The MoU will see the pair collaborate in training talents for the Indian semiconductor manufacturing industry.
Ashwini Vaishnav, the Union Minister for Electronics and IT of India said Simmtech, eligible for India's subsidy under the SPECS (Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors), had signed an MoU with the government of Gujarat to set up a plant close to Micron's facility in Sanand. He added that the state allocated 30 acres of land for Simmtech's facility,
Construction for the project will commence in 2-3 months. The establishment of the plant is expected to take approximately 6-7 months.
DIGITIMES Research analyst Chou Yen observed that South Korean-based PCB manufacturers are diversifying into IC substrates, particularly FCBGA products, with Simmtech among those foraying into IC substrates. Still, rather than advanced products such as FCBGA, Simmtech focused on mature products like FCCSP, confronting competition from China.
Source: Bloomberg, January 2024
