New Delhi Fabless chipmaker MediaTek, which supplies chips to some of the world’s top electronics firms, said it is ready to consider using chips made in India once the country’s ecosystem develops. In an interview, Anku Jain, managing director, MediaTek India, said that the fabrication units planned for India will first focus on mature nodes.
The technology node is important in chip manufacturing. Smaller nodes lead to more efficient chips, which are used in the most advanced devices. However, more mature nodes such as 28nm and above are still used in many devices, including appliances and smart home products.
Jain’s comments came after MediaTek Chief Executive Officer Rick Tsai said last November that chip makers like MediaTek would need multiple sources in the future. Tsai, who was speaking to Reuters at the time, mentioned Taiwan, the US, Germany and Europe as major producing markets.
MediaTek is one of the largest chip suppliers to smartphone makers. Counterpoint Research said the firm supplied 28% of all mobile chips in the December quarter, behind Apple and ahead of US rival Qualcomm. Smartphone chips, especially those supplied by firms such as MediaTek and Qualcomm, however, are generally made using 5nm and below nodes, which are not expected to be produced in India for the time being.
Jain said, however, that MediaTek sees “very high potential” for India to emerge as a chip manufacturing hub. At the macro level, chip availability has improved, he said.
“We see very serious intentions from the government and industry partners. The government has realized that semiconductor itself is a very strategic sector, and we really can’t rely on outside parties and we need at least some control. We are still in the early days. From a design perspective, India has been doing very well over the last several years. I think in fact 20-25% of the global talent is available in India from a chip design perspective. Our Has several patents from MediaTek India.
To be sure, the Indian government has offered production-linked incentives (PLIs) worth $10 billion to chip firms looking to set up manufacturing units in India. A joint venture between Taiwan’s Foxconn and Indian conglomerate Vedanta Group is currently said to be the frontrunner to get approval. In February, the company hired chip veteran David Reed to lead its chip efforts in the country.
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