NXP Semiconductors to Invest Over $1 Billion in India’s R&D Expansion

New Delhi: NXP Semiconductors, a Dutch company, will invest over $1 billion (approx. Rs. 8,398 crores) in India to double its research and development (R&D) efforts, announced CEO Kurt Sievers during the Semicon India conference near New Delhi. This move aligns with India’s growing focus on becoming a key player in the global semiconductor industry.

Sievers stated that NXP is engaged in discussions with the automotive and other industries in India, where the company already operates four semiconductor design centres with around 3,000 employees.

While India’s chip manufacturing is still in its early stages, the government has allocated a $10 billion (approx. Rs. 83,985 crore) incentive package to boost semiconductor production and compete with global leaders such as Taiwan. The country’s semiconductor market is projected to reach $63 billion (approx. Rs. 5,29,102 crore) by 2026.

Global tech giants, including Nvidia and AMD, have also set up significant research and design hubs in India, marking the nation’s increasing relevance in the global semiconductor ecosystem. Prime Minister Narendra Modi noted that India contributes around 20% of the industry’s chip design talent and is preparing a semiconductor workforce of 85,000 technicians, engineers and R&D professionals.

Earlier this year, India approved the construction of three semiconductor plants, including projects by Tata Group and CG Power, with a total investment of Rs. 1.26 trillion (approx. $15 billion), as part of its strategy to become an electronics manufacturing leader.

Additionally, US-based Micron plans to establish a $2.7 billion (approx. Rs. 22,677 crore) testing and packaging unit in Gujarat, creating about 5,000 jobs, while Applied Materials announced a $400 million (approx. Rs. 3,359 crore) investment in a new engineering centre in India.

NXP recently reported its steepest quarterly revenue drop in four years and projected weaker-than-expected third-quarter results, raising concerns over automotive chip demand.