Semiconductor: HCL-Reliance to form semiconductor together, both can buy 30-30 percent stake in ISMC.

Reliance Industries (RIL) and HCL Technologies may enter the semiconductor space. Both the companies are in talks to buy 30-30 per cent stake in ISMC Analog. The central government has announced several concessions to promote semiconductor manufacturing. This is increasing the interest of domestic companies in the semiconductor sector.

Reliance and HCL may invest more than Rs 4,000 crore in ISMC analogs. For this, separate talks are going on between the two companies. If the deal goes through, Reliance and HCL could find a place in the ISMC analog. The purpose of this deal of Reliance is that it wants to prepare most of the semiconductor supply chain in the country. Reliance currently manufactures feature phones and smartphones with Google in Sriperumbudur and Tirupati. Semiconductor chips are also used in phones.

Semiconductor market growing at the rate of 16-18 percent

The semiconductor market in India is growing at a compounded growth rate of 16-18 per cent. This has especially accelerated due to the rapid growth of the digital economy. There is also the potential for large-scale export of semiconductors from India. Hence the interest of investors in this sector will continue.

Tension between China and Taiwan will benefit

India is promoting this industry at a time when tensions between China and Taiwan have increased. The world’s largest contract chip maker is Taiwan’s TSMC. Taiwan wants to increase cooperation with India in the field of electronics and chip making. The aim of the government is to create an ecosystem for the semiconductor industry. It is providing manufacturing support to 18 sectors from PLI, some of which have achieved great success.