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TAP TIMES -11- JANUARY 2022
India ups the ante . . .While Intel readies $7.1B
for a domestic wafer fab . . . for more Malaysian assembly
NEW DELHI, India — The movers
and shakers heading up the Indian for assembly, packaging and test. Last
government must still be wondering December, the Indian government an-
what it will take to entice a world- nounced a new semiconductor policy.
class semiconductor fab to India.
Four fabs
Now the government says it will provide
Where is Cricket Semiconductor? up to half of the cost for two semiconduc-
In 2015, Cricket Semiconductor, led by tor fabs and two display device fabs. The
two ex-Texas Instruments alumni, said figure of a $10 billion fab incentive is also
they would spend $1 billion to site an being floated.
analog chip foundry in the country. If you
click on the Cricket web site, it appears Around the same December 2021 time-
the company did not get beyond an initial frame, Intel CEO Patrick Gelsinger said
announcement of its new fab. Intel will invest $7.1 billion to build an
advanced packaging plant in Malaysia.
Fast forward to 2020. The Indian gov- Intel built its first Malaysian assembly
ernment announced it would offer an plant in 1972. Gelsinger said the com-
incentive of $1 billion dollars for a fab, pany will expand its Malaysian operations
apparently with the expectation it would across Penang and Kulim, creating 4,000
be pushing away an overflow crowd of new Intel jobs and more than 5,000 local
interested foreign companies with wafer construction jobs.
fabs. That did not happen.
13,000 Intel workers to be added
Shortly after that announcement, how- These jobs will be added to the 13,000
ever, Indian industry pundits believed workers now employed by Intel there.
that country’s massive Tata Group, with The company has closed as many OSATs
FY2021 revenue north of $103 billion as it’s opened over the decades. In 2009,
(₹7.7T) might be up to the task. Intel closed its large Philippines assembly
and test plant.
India’s mega-company The expansion of its Malaysian activities
Founded in 1868, Tata is India’s second bodes well for other Asian OSATs who are
largest company by revenue and employs likely to pick-up some business from the
a staggering 800,000 people. The Group microprocessor leader. Malaysia already
is privately held, and operates 30 compa- employes some 10% of Intel’s global
nies across 10 vertical business lines. workforce.
The new Intel plant will be based in Bay-
Since November 2021, various sources an Lepas near an airport in the Northern
have reported that Tata is in talks with Malaysian state of Penang. No start or
three Indian states to invest $300 million completion date has been announced.
