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    Thursday, June 20, 2024

      Reliance to Explore Chip Manufacturing and in Talks With Potential Partners : Report

      As per two people familiar with its strategy, Reliance Industries has begun exploring a foray into semiconductor manufacturing, a move that could address its supply chain needs and cater to growing chip demand in India.

      The telecoms-to-energy industry, encourage by the Indian government, has held early-stage talks with foreign chipmakers that have the potential to become technology partners, said one of the people who has direct knowledge of the plans. 

      As per one of the familiar with its strategy :

      “There is intent, there is no timeline,”

      Also Reliance has “yet to make a call on whether they want to ultimately invest.”

      The names of the foreign chipmakers could not be immediately learn.

      The sources were not authorise to speak to media and decline to be identified.

      Reliance, whose interest in making semiconductors has not previously report, did not respond to repeat requests for comment. 

      India’s IT ministry and Prime Minister Narendra Modi’s office also did not respond to requests for comment.

      PM Modi has declare he wants his country to become a chipmaker for the world but those ambitions, first laid out in 2021, have suffered setbacks.

      The country does not as yet have any chip manufacturing plants, although India’s Vedanta and Taiwan’s Foxconn are both looking at building facilities.

      Reliance sees merit in getting into semiconductors as the move would help safeguard against chip shortages that could affect its telecom and electronic devices businesses, as per sources.

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      In 2021, the conglomerate delay the launch of a low-cost smartphone it was developing with Google citing the chip shortage. 

      Demand for semiconductors in India and globally is also increasing, they said.

      India’s government has forecast the domestic chip market will be worth $80 billion (approx. Rs. 6,64,200 crore) by 2028 compare with $23 billion (approx. Rs. 1,90,960 crore) currently.

      A $19.5 billion (approx. Rs. 1,61,930 crore) venture between Vedanta and Foxconn collapse in July even before it got off the ground as the two sides struggle to find a tech partner, with Foxconn complaining that the project had not move fast enough.

      Foxconn has since decide to invest in India without Vedanta.

      Plans by ISMC, a venture between Abu Dhabi-based Next Orbit Ventures and Israel’s Tower Semiconductor, to invest $3 billion (approx. Rs. 24,900 crore) in India, have move slowly after Intel sought to acquire Tower.

      Afterwords Talks between Intel and Tower collapse.

      Reliance has for months been considering an investment of $300 million (approx. Rs. 2,490 crore) that would give it a 30% stake in the venture, a third source with direct knowledge of discussions said.

      Next Orbit Ventures and Tower did not respond to requests for comment.

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