Mukesh Ambani-led Reliance Industries is reportedly looking to enter the semiconductor business. Reuters reported citing sources that the conglomerate has already begun talks with foreign chipmakers who can act as its technology partner.
As per the report, the talks are still in early stage and there is no clarity about the timeline. A source cited by the Reuters said that Reliance has still not decided whether they want to invest.
Reliance is looking to build its own supply chain to prevent itself from shortages, other sources cited in the report said. The new development comes as the conglomerate expands its production of electronic devices, which include the new JioBook and JioBharat phone.
The report said that Reliance has been considering a $300 million investment to pick up a 30 per cent stake in ISMC, a venture between Abu Dhabi-based Next Orbit Ventures and Israel's Tower Semiconductor. The joint venture had planned to invest $3 billion in India. However, the plan has moved slowly as Intel's plan to acquire Tower had collapsed.
Indian government has been pushing the development of semiconductor manufacturing in the country. In this direction, the government had launched the $10 billion India semiconductor mission.
Vedanta and Foxconn had announced a partnership last year to invest $19.5 billion and begin semiconductor manufacturing in Gujarat. However, the joint venture's application for subsidies under India's programme was rejected. Since then, the two companies have separated and they are reportedly looking for other partners to foray into the semiconductor business.
Coming as a boost to India's semiconductor dreams, US chipmaker Micron had announced in June that the company will set up a Assembly, Testing, Marking and Packaging (ATMP) in Gujarat. According to reports, the plant is expected to come up by the end of 2024.
During a Semiconductor conference in Gujarat's Gandhinagar, Prime Minister Narendra Modi had said the semiconductor industry trusts India due to massive talent pool of skilled engineers and designers.
