'Local war' will start on semiconductor in India, now Mukesh Ambani will be in the fray! - Newztezz Online


Friday, September 8, 2023

'Local war' will start on semiconductor in India, now Mukesh Ambani will be in the fray!

The Indian semiconductor market, which was cool for the last few days, is now about to heat up. The reason for this is the news of Mukesh Ambani's entry into this sector. Due to which there is panic in the entire market. It is reported that Reliance has also found a foreign partner for itself.

You must be seeing and hearing the sporadic fight between America and China on semiconductor chips every day. In the coming days, you are going to forget this global war. There is a reason for this too. A 'local war' bigger than this global war is going to start in India. Mukesh Ambani, the richest businessman of Asia and chairman of India's largest company Reliance, is about to enter this war. This means that in the coming days, from Vedanta to Foxconn, Tata Group, Micron and other big and small companies of the country will have to compete with Reliance i.e. Mukesh Ambani's chip business, which is going to start chip making in the country or started. By the way, the biggest competition for Mukesh Ambani is going to be from Foxconn and Tata Group.

Timeline not fixed yet

Reliance has also started looking for foreign partners for this business. So that he can use their technology for chip manufacturing. For this, Nvidia's name is also being taken prominently. Which is one of the largest chip making companies in America. According to the Reuters report, no timeline has been fixed by the company yet. According to the experts, the names of the companies which are coming out now are under speculation. The name of any foreign company has not been finalized yet. So far, no official statement has come out from Reliance in this matter. Nor has any statement come from the IT Ministry or PMO.

Country and the world will be of great help

If experts are to be believed, Reliance is seeing a lot of potential in semiconductors. If Mukesh Ambani comes into this business and does chip manufacturing, he will not only help in improving the supply chain of the country and the world, but he will also help his telecom and electronic device business a lot. In 2021, the group delayed the launch of a low-cost smartphone being developed with Google, citing chip shortages. The demand for semiconductors is also increasing in India and at the global level. The Indian government has estimated that the domestic chip market will be worth $80 billion by 2028, whereas currently it is worth $23 billion.

Why is Mukesh Ambani's Reliance important in chip making?

Arun Mampazhi, a former Indian executive at US chipmaker GlobalFoundries, said Reliance, which has a market cap of around $200 billion, would have been a good fit for the semiconductor sector. He said that there is no shortage of money for Reliance and they know how to work with the government. He also said that chip manufacturing is an industry that has historically been subject to boom and bust cycles and requires a lot of expertise. Mampazi said it is important to get a technology partner in the form of a joint venture or through tech transfer.

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