The Indian semiconductor sector gained momentum as specialty chemicals firms like Merck and Linde explore investment opportunities. Merck plans a $300-500 million plant for specialty chemicals, while Linde seeks to produce high-purity gases. The establishment of local supply chains is critical for the industry’s development, with ancillary companies reinforcing the growing ecosystem.
The buzz surrounding India’s semiconductor sector is drawing significant attention from specialty chemicals companies. According to an insider, Merck is in discussions with the Indian government to establish a plant for manufacturing specialty chemicals, which is anticipated to involve an investment of approximately $300-$500 million. The exact location for this facility has not yet been determined.
Moreover, Linde, a leading specialty gases firm, is reportedly planning to construct plants dedicated to high-purity gases. These developments underscore the growing significance of India in the global semiconductor supply chain as firms seek to establish their presence in the country.
A spokesperson for Merck remarked, “We believe that India is becoming an increasingly important partner in the global semiconductor ecosystem. However, at this time it is too early to talk about concrete investment numbers in India. We continue to closely follow opportunities that align with our strategic goals.” This sentiment reflects the cautious optimism around semiconductor manufacturing in India.
The role of specialty chemicals and gases is critical in achieving high levels of precision during semiconductor production. These materials facilitate essential processes, including etching and doping, while ensuring ultra-high purity standards necessary for developing sensitive semiconductor components. The emphasis on local production sources is paramount as India builds its own fabrication facilities.
Navin Bishnoi, Country Head at Marvell India, commented, “Ancillary companies need to come and set up base in India. The companies that provide gases, chemicals, the different wafers, tools, equipment and everything else” are essential for completing the ecosystem. Their arrival mirrors the historical context of Taiwan’s semiconductor supply chain, highlighting the shift to India’s growing capability.
Neil Shah, Vice President of Research at Counterpoint Research, pointed out the logistics of supply chains for gases and chemicals. He stated, “For bulk gases and specialty gases, it is critical to maintain uninterrupted supply.” Placing suppliers within 40 km of fabrication plants is crucial for timely deliveries, emphasizing the need for local manufacturing plants in India’s burgeoning semiconductor landscape.
As the competitive landscape heats up, companies such as Korea Gases and Taiyo Nippon Sanso will need to aggressively pursue opportunities in India to retain clients. Linde already holds a strong position in India, supplying various industries, including the Semiconductor Laboratory in Mohali. The entrance of new players such as Merck signifies a pivotal shift in the sector.
In conclusion, the establishment of specialty chemical plants by companies like Merck and Linde in India signifies an important milestone for the country’s semiconductor industry. The development of local capacities is crucial for efficient production workflows, supporting logistics, and enhancing the appeal of India in the global semiconductor supply chain. As ancillary companies set up operations in India, the ecosystem for semiconductor manufacturing will become increasingly robust and self-sufficient.
Original Source: m.economictimes.com
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