South Korea’s SK Hynix mulling to set up chip packaging plant in India
South Korean chipmaker SK Hynix is evaluating India’s semiconductor manufacturing incentive scheme. While it is in touch with the Centre to explore the prospects of setting up a packaging facility in the country, the company is said to be in the final stages of preparing its proposal. The chipmaker is considering India as an assembly and testing destination, similar to Micron.
“SK Hynix has shown interest in our scheme, and is currently evaluating it to assess it from their business’s perspective. We believe they are in the final stages of submitting a proposal to set up a packaging plant, similar to that of Micron’s,” a senior government official said, requesting anonymity as talks are currently confidential.
The development comes in the wake of Micron’s decision to set up a packaging facility in Gujarat at a total cost of $2.75 billion. While 70 per cent will come in subsidies from the Central and state government, the company is expected to invest 825 million from its own pocket.
Samsung and SK Hynix dominate global sales of dynamic random-access memory chips, with data showing they held market shares of 41 per cent and 29 per cent respectively, in the final quarter of 2022, followed by Micron at around 26 per cent.
The Centre’s incentive scheme for the semiconductor, worth a total outlay of $10 billion, offers capital subsidies to the tune of 50 per cent of the total project cost for setting up assembly and testing plants.
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