In a major step toward its $1-billion India investment, Dutch chipmaker NXP Semiconductors has begun scouting land in Greater Noida’s Semiconductor Park to set up a second research and development facility. This marks the first concrete move under CEO Kurt Sievers's expansion plan announced last year.
Government sources told Moneycontrol that the company’s senior management is actively engaged with officials from the Yamuna Expressway Industrial Development Authority (YEIDA) to acquire land in Sector 10 in the YEIDA region of Greater Noida, Uttar Pradesh, for R&D, system innovation, and lab infrastructure.
Sievers met with the UP chief minister during the Semicon event and later followed up with discussions in October 2024, signalling a strong intent to deepen the company's footprint in India.
“After meetings with YEIDA officials and encouragement from the Uttar Pradesh government at Semicon India 2024, NXP decided to pursue this opportunity,” a source said, requesting anonymity.
A query sent to NXP India didn’t elicit any response.
At Semicon 2024, Sievers underscored NXP’s bullish outlook on India, announcing plans to invest $1 billion over five years to bolster R&D capabilities in both hardware and software. This includes work on advanced technologies like the company’s newly launched 5-nanometer automotive chip.
NXP then said it aims to double its India workforce to over 6,000 within five years. Design engineers, who already make up more than 80% of NXP’s 3,000 India-based employees, will remain the core of this expansion.
The company expects India to contribute between 8% and 10% of global revenue in the next three to five years.
With four existing design centres nationwide, NXP is sharpening its focus on artificial intelligence and automotive innovation, which is pivotal to the next phase of its global growth strategy.
The Greater Noida region is also getting its first semiconductor plant, which HCL Group and Foxconn will set up at an investment of Rs 3,700 crore. The Union Cabinet recently approved the sixth unit under the India Semiconductor Mission, with five semiconductor facilities in advanced construction stages.
Three of these units by Micron Technologies, Kaynes Technologies, and a combination of CG Power-Renesas Electronics and Star Microelectronics are based in Sanand, Gujarat. The Tata Group is building one semiconductor facility in Dholera, Gujarat, and another in Assam.
YEIDA previously issued letters of intent (LoI) to Aditech Semiconductors for compound semiconductor manufacturing, Tarq Semiconductors (Hiranandani Group), and Kaynes Semicon. Kaynes, however, shifted its OSAT unit to Gujarat.
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