India's hopes for semiconductors enhanced by South Korea's $120 billion chip export target

With a goal of achieving a $120 billion (₹9 lakh crore) chip export objective, South Korea committed to help India's semiconductor industry. Plans to quicken the development of AI chips and high-bandwidth memory were revealed by Industry Minister Ahn Duk-geun. This was in line with India's aspirations for semiconductors, which are supported by large investments; plans totaling $26 billion (2 lakh crore) are currently under clearance.

“The government will support the timely establishment of related infrastructure, secure competitive technologies, promote exports, and strengthen the ecosystem of materials, parts, equipment and fabless sectors," Ahn said during his visit to SK hynix's semiconductor cluster construction site, reports Yonhap news agency.

The move comes at a time when India has embarked on an ambitious semiconductor journey, with massive investments pouring in. About $26 billion worth investment proposals are currently with the Indian government for semiconductor manufacturing in the country, according to industry sources.

More than $18 billion worth proposals have already been cleared by the government, which includes three new semiconductor fabrication (fab) manufacturing projects worth Rs 1.25 lakh crore.

Meanwhile, SK hynix is currently seeking to build four units of fabrication plants at the site with a budget of 120 trillion won ($89.5 billion) by 2046, with the groundbreaking of the first unit set to start in the first quarter of 2025.

The company plans to mainly produce DRAM and NAND flash memory chips at the cluster, which will become its flagship production hub. In line with these efforts, the ministry plans to launch a new department dedicated to supporting the development of the cluster, along with comprehensive support measures within this month.