Dutch NXP Semiconductors to double R&D presence in India; eyes DLI participation

semiconductor-AI

Dutch chipmaker NXP Semiconductors is increasing investments to double research and development (R&D) presence in India over the next three to five years and is also examining the possibility of partnerships in the space of wafer fabrication as well as testing and packaging space in the country, a top executive has said.

The company will also apply for the design-linked incentive (DLI) scheme once the Indian government opens it up for multinational companies. It is already in touch with the Ministry of Electronics & Information Technology (MeitY).

“In the last three years, we have almost doubled our R&D. I see that the same trend will continue for the next three years or three to five years,” Hitesh Garg, India Country Manager of Dutch-headquartered NXP Semiconductors, told Moneycontrol.

The company is looking at system design, Artificial Intelligence, software, and hardware competencies. “We are looking at all possibilities for how we continue strengthening our R&D in this region to stay ahead of our competition.”

The company employs more than 4,000 engineers at its sites in India, including Noida, Bengaluru, Hyderabad, and Pune.

At the local R&D centres, artificial intelligence (AI) is one of its key focus areas for getting into more advanced systems for automotive and other applications, Garg said. “AI is the game changer. We are using AI in multiple domains on our chips. Also, from the enablement standpoint, we are looking at how we can use AI to be more and more efficient,” he added.

NXP, which has wafer fabrication and semiconductor ATMP facilities worldwide, is “very actively” exploring the possibilities of partnerships.

“...we are using all the possible manufacturing facilities in the ecosystem [gloally]. We are looking very actively in India. But there is no partnership that we have publicly announced yet…We try to see what best fits our strategy regarding manufacturing node and capabilities,” Garg said.

He said that the company is keeping a "good eye "on developments in the manufacturing ecosystem on both the fabrication and ATMP sides. “As and when this ecosystem develops, we will surely be using it,” he said.

NXP will also apply for DLI scheme once the government opens it up to multinational companies. “We are looking forward to options. At least we have some thoughts about making some nice products for India. So, whenever we see an option available to us, we will definitely be pitching for those opportunities with the Indian government,” Garg said.

At present, the DLI scheme is limited to startups; seven have been approved for claiming incentives. India is evaluating a proposal to include large multinational companies in its $200 million DLI scheme if they design chips in the country.

NXP also collaborates closely with the country's startup ecosystem and actively seeks out startups to support its growth through investment opportunities.

“We look at investment possibilities very actively. We are looking at the startup ecosystem and how we engage and mentor some of those startups to grow the electronics and semiconductor ecosystem,” Garg said.