According to a statement made by Powerchip Technology Corp, it is in preliminary discussions with several Indian conglomerates to assist in the construction of new chip plants in the nation as India supports the expansion of local chip capacity.
The memory chip and power management IC manufacturer’s statement verified rumors that, in the last six months, it had been considering investing in India to diversify its business activities in the face of escalating geopolitical uncertainty.
The business took similar actions as those done previously by Hon Hai Precision Industry Co., United Microelectronics Co., and Taiwan Semiconductor Manufacturing Co.
According to reports, Powerchip was in talks with Tata Group about joining forces to develop a semiconductor manufacturing facility. Powerchip refused to say whose businesses it is in talks with.
At a news conference held in Taipei by the Taiwan Advanced Automotive Technology Development Association, Powerchip chairman Frank Huang told reporters that local semiconductor companies must now consider globalization more seriously than they previously had to.
In order to assist India in building a plant, Powerchip is getting ready to sign a deal. It went through a similar situation in China, and now it is attempting to figure out how to support India. Building a domestic chip plant is more cost-effective for Indian businesses since India charges substantial import duties on semiconductors.
In order to construct and run a fab in Chengdu, China, Powerchip’s parent firm, Powerchip Investment Holding Corp, established Nexchip Semiconductor Corp in October 2015 in partnership with the Sichuan provincial government.
Powerchip Investment Holding has a 23.49 percent holding in Powerchip Semiconductor and about 27.44 percent of the shares of Nexchip Semiconductor. Nexchip uses techniques with 150-nanometer and 90-nanometer resolution to create less sophisticated devices, such as display driver ICs.
Powerchip stated that it is unknown what role the firm will play, whether as a technological supporter or an equity investor of a joint venture, as the discussions in India are still in the early stages.
Chinese businesses and US businesses with operations in China are seeking a second source to avoid having their exports stopped by Washington, Huang added, which is helping Taiwanese manufacturers.
He stated that he anticipates the business of Powerchip to begin to recover in the second part of this year once the substantial supply chain inventory adjustments caused by COVID-19 disruptions have ended.
According to him, some notebook computers are still processing too much inventory. He also predicted that the first quarter would be the lowest.
Powerchip stated that it is reducing plant utilization to deal with weak demand, although its loading rate is higher than several chipmakers who slashed production in an effort to survive the crisis.
Due to a prolonged wait time for semiconductor production equipment, the company claimed it would also have delays of around six months in ramping up a new 12-inch plant, known as the P5 fab, in Miaoli County’s Tongluo Science Park.
Powerchip Technology Corp
Powerchip Technology Corporation manufactures and sells semiconductor products, in particular, memory chips and other integrated circuits. The company offers foundry services as well as design, manufacturing, and test services. It was formerly known as Powerchip Semiconductor Corp. and changed its name in June 2010. It was founded in 1994 and is headquartered in Hsinchu, Taiwan.
