Reliance looks into chip manufacturing and talks to potential partners

11 Sep 2023 , 10:44 AM

Reliance Industries has started to investigate a push into semiconductor production, a move that might handle its supply chain requirements and meet the rising chip demand in India, according to news reports.

According to the reports, the telecoms-to-energy conglomerate has had preliminary discussions with foreign chipmakers who may end up as technical partners, with the support of the Indian government.

The report added that Reliance has ‘yet to make a decision on whether they want to ultimately invest,’ adding that ‘there is intent, there is no timeline.’

According to the report, Reliance sees the value in investing in semiconductors as a way to protect against chip shortages that would negatively impact its telecom and electronic device businesses. For instance, the conglomerate postponed the release of a low-cost smartphone it was working on with Google in 2021, claiming a chip shortage.

They stated that there is a rising demand for semiconductors both domestically and internationally. The domestic chip market in India is expected to grow from its present $23 billion value to $80 billion by 2028, according to official estimates.

Following Intel’s attempt to acquire Tower Semiconductor, plans by ISMC, a partnership between Abu Dhabi’s Next Orbit Ventures and Israel’s Tower Semiconductor, to invest $3 billion in India have made poor progress. Later, negotiations between Intel and Tower broke down.

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