India and Thailand vying for dominance in Asia's chipmaking industry

18 Aug 2023 CW Team

India and Thailand are actively competing for a prominent position on Asia's semiconductor manufacturing map. With the ongoing chip war between China and the US, India is positioning itself as a viable alternative, aiming to be a major player in the semiconductor supply chain. In contrast, Thailand has identified semiconductors as one of its most essential commodities.

In July, India's Prime Minister Narendra Modi emphasised India's potential in the global chip industry during the SemiconIndia 2023 event. He highlighted India's democratic values and the country's ongoing reforms as attractive factors for global investors. The Indian government, in 2021, approved the Modified Programme for Development of Semiconductors and Display Manufacturing with a budget of Rs 760 billion. This initiative seeks to incentivise companies involved in various semiconductor-related activities.

Furthermore, the government greenlit Micron Technology Inc.'s proposal to establish a semiconductor unit with an investment of Rs. 22,516 crore ($3.02 billion). This facility will produce DRAMs, Flash memories, and Solid-State Devices. On the other hand, Thailand is offering extended corporate tax breaks to attract chip companies and is focusing on advanced semiconductor processes.

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