Minor progresses are seen in India's semiconductor manufacturing landscape. China's tightened export control on rare earths begins to disrupt India's EV dream.
India's US$21 billion chip plan is underway — but who will deliver?
India's US$21 billion semiconductor push has attracted major global and domestic investment, with five of six greenfield projects focused on legacy packaging. Experts say actual high-volume production—primarily in OSAT—won't begin until 2028. While incentives are strong, talent shortages and a lack of a materials supply chain could delay India's chipmaking ambitions.
India approves Micron's investment plan in SEZ rule relaxation
India has eased SEZ rules for semiconductors and electronics, cutting land requirements and allowing mortgaged or leased land. The reforms cleared key hurdles for investors, leading to SEZ approvals for Micron's US$1.52 billion chip plant in Gujarat and Aequs' electronics components hub in Karnataka.
Renesas says Wolfspeed situation will not affect OSAT project in India
Renesas has clarified that ongoing issues with Wolfspeed will have no impact on its OSAT joint venture project in India. "The situation involving Wolfspeed will have no impact on the OSAT project, including production, operations, or the relationship between Renesas and CG Power," adding that it does not plan to produce silicon carbide (SiC) devices under the OSAT collaboration.
Fujitsu sells power modules business to India-based L&T Semiconductor and Kaynes Semicon in strategic realignment
Fujitsu General Ltd. announced that it agreed to sell its power modules business, operated by subsidiary Fujitsu General Electronics Ltd. (FGEL), to India's L&T Semiconductor Technologies (LTSCT) for approximately JPY2 billion (US$12.8 million). The move is part of Fujitsu's broader strategy to streamline its portfolio and focus on its core tech solutions business.
Tata-Bharat partnership to advance India's semiconductor and electronics capabilities
Tata Electronics and Bharat Electronics have signed a Memorandum of Understanding to co-develop indigenous semiconductor and electronics solutions. The partnership will explore joint efforts in chip fabrication, assembly, and design services, supporting India's self-reliance goals and aligning with Tata's expanding semiconductor investments in Gujarat and Assam.
Rare earth magnet shortage poses risk to India's EV ambitions
A prolonged disruption in rare earth magnet supplies could slow down India's electric vehicle (EV) rollout and impact the broader automobile industry, according to a recent assessment by CRISIL Ratings. The supply shortage, triggered by China's export restrictions and shipping delays, poses a critical risk just as automakers prepare to launch over a dozen EV models, many of which are built on permanent magnet synchronous motor (PMSM) platforms, according to industry sources.
India has two weeks to avoid an EV industry crisis, analysts warn
India's EV industry faces the risk of large-scale production halts by the end of July unless China clears rare earth export approvals within the next two weeks, according to Puneet Gupta, director of India & ASEAN automotive market at S&P Global.
Dixon Technologies, Signify to form 50:50 JV for lighting OEM in India
According to a corporate filing, Dixon Technologies and Signify Innovations India have signed an agreement to form a 50:50 joint venture to manufacture lighting products and accessories in India, aimed at strengthening their OEM capabilities and market presence. The proposed transaction is expected to close by November 30, 2025, subject to regulatory approvals and other conditions.
Article edited by Jerry Chen
