Silicon Power Group, a US-based semiconductor manufacturer, is to build a $121.73m (Rs10bn) silicon carbide plant in Odisha state, India.

The plant will make 150mm silicon carbide for use as a component in semiconductors. The investment will be channelled through Silicon Power Group’s India subsidiary RIR Power Electronics. The Indian Government estimates that the semiconductor market will be worth $63bn by 2026.

RIR is the only private company in India that manufacturers semiconductors from the initial diffusion stage onwards, giving the company a comparative advantage over its competitors. The company has committed to an 18–24 month timeline.

The revelation came after a meeting in Silicon Valley, US, between a government delegation from Odisha and Silicon Power Group CEO Harshad Mehta.

Among Silicon Power’s aims is the development of a semiconductor that can switch high-power and high-voltage electricity with optical signals. Using lights to control circuits, this semiconductor could enable simpler control of high-voltage equipment, streamlining project efficiencies. It was awarded $4.75m for this project in 2013.

Semiconductors are growing in importance as a result of global electrification efforts requiring computer chips. In 2021, India announced a scheme to offer a 50% subsidy for domestic semiconductor manufacturers. The government has reopened applications for chip and semiconductor investment until December 2023, meaning RIR may be joined by other entrants into the market.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

However, potential investments in the country for chip manufacturing have stalled for a variety of reasons. Multiple companies angling to enter the market have been unable to secure tech partners. Chip consortium ISMC had planned to build a $3bn semiconductor facility in the country; however, one of its members, TOWER, is amid a takeover by Intel, which has stalled progress.

Further still, an attempt to build a $19.5bn chip plant in the country by India’s Vedanta and Taiwanese company Foxconn has stalled due to a deadlock in negotiations with chipmaker STMicroelectronics regarding the latter’s potential entry.