NXP Semiconductors CEO Kurt Sievers said the company will invest over $1 billion in India, doubling its research and development efforts.
“NXP is committed to double its R&D efforts here in the country in the next few years,” Kurt Sievers said at the Semicon India conference near New Delhi.
NXP Semiconductors is in talks with the automotive and other industries in India. NXP Semiconductors has four semiconductor design centers, with about 3,000 employees.
Globally, NXP had 33,857 full-time employees at the end of December, 2023 compared to 34,223 at December 31, 2022. More than 60 percent of NXP Semiconductors employees are in Asia.
NXP had lowered its capital expenditure to $827 million in 2023 from $1,063 million in 2022. NXP said it expects to maintain similar levels of capital expenditures as a percentage of revenue in 2024, to support current and future manufacturing and production capacity needs.
NXP has increased its research and development expenditures to $1,815 million in 2023 from $1,696 million in 2022.
Revenue of NXP Semiconductors fell 5 percent to $3.13 billion with gross margin of 57.3 percent during the second quarter of 2024. NXP Semiconductors has generated second-quarter sales of $1,728 million from Automotive, $ 616 million from Industrial and IoT, $345 million from Mobile, $438 million from communication infrastructure.
India has allocated $10 billion incentive package to semiconductor companies to attract investment to India in its efforts to rival global chipmaking powerhouses like Taiwan. India expects its semiconductor market to be worth $63 billion by 2026, Reuters news report said.
Nvidia and AMD have established substantial research and design centers in the country.
“India’s contribution of about 20 percent of chip designing talent to the industry is growing and we are preparing an 85,000-strong semiconductor workforce of technicians, engineers and R&D experts,” Indian Prime Minister Narendra Modi said at the event.
In February, India gave the approval to construct three semiconductor plants worth 1.26 trillion rupees ($15 billion) to firms including Tata Group and CG Power.
Micron CEO Sanjay Mehrotra said last year that the U.S. memory chip maker’s $2.7 billion testing and packaging unit in Gujarat would help create about 5,000 jobs in the state.
Chipmaking equipment vendor Applied Materials said in June last year that it would invest $400 million over four years in a new engineering center in India.
