Japan’s Sharp plans to set up $3-5 billion display fab semiconductor unit in India

Japanese company Sharp is reportedly planning to invest $3-5 billion to set up a display fab semiconductor factory in India. The display fabs are used for making televisions and other digital screens.

According to a report in the Times of India, top officials from Sharp met communications minister Ashwini Vaishnaw this week in this regard.

Notably, Sharp is planning to set up a 1,000-acres facility in India which will be even bigger than its factory back home in Japan. Sharp want to use the Indian factory to cater to both domestic demand but exports.

“The company is scouting for land to create a large manufacturing set-up spread across 1,000 acres which will manufacture the latest-generation Series 10 displays. These are some of the most advanced display fab versions that the industry currently makes,” the TOI report claimed quoting a source.

Sharp is also talking to state govts in Telangana, Gujarat, and Maharashtra for the facility.

As per the report, the company has informed the Central government about its intention to establish the factory in India as a global manufacturing center. “Sharp officials said the proposed factory is not just for India but will also supply the display fabs across key global markets.”

The final approval, however, may take approximately ten months due to ongoing elections. After the polls, a new administration will assess the active proposals. Additionally, the government is examining the semiconductor incentive scheme and the methods for rewarding new entrants.

Before Sharp, Israel’s chipmaker Tower Semiconductors has also approached the Indian government to set up a fab unit worth Rs 90,000 crore.

In a bid to manufacture semiconducts in the country, India has introduced a $10 billion incentive program, in addition to other actions to facilitate the development of a supporting ecosystem and meet the necessary workforce requirements. American Micron was the first company to announce a large Rs 22,500 crore semiconductor testing and packaging facility in Gujarat in June last year, and the government approved three proposals totaling nearly Rs 1.3 lakh crore in February this year.

These projects included a project worth Rs 91,000 crore by Tata Electronics to establish India’s inaugural semiconductor fabrication unit in collaboration with Taiwanese Powerchip Semiconductor Manufacturing Corp at Dholera in Gujarat. Other proposals comprised of Tata Semiconductor Assembly and Test (TSAT) unit in Morigaon, Assam, requiring an investment of Rs 27,000 crore, and a project worth Rs 7,600 crore by CG Power in collaboration with Japanese Renesas Electronics and Stars Microelectronics of Thailand.

India is currently spending a significant amount of money on importing semiconductor chips to fulfill the increasing needs of various industries like electronics, automobiles, telecommunications, defense, and power equipment.

In July last year, American Advanced Micro Devices (AMD) announced a $400 million investment into India to build its largest design centre at Bangalore. At present, nearly one-third of the global semiconductor design is taking place in India.