This is great news indeed. Finally government has woken up. I feel we need to have Fab in India because this will give diversity to Supply-Chain. Moreover with lot of expertise in design and software, venturing into fab business was the next logical step for India.
This seems like a pretty risky investment, perhaps driven more by issues of national pride than by ROI analysis?
I don't understand the concerns about "reliance on chips made overseas" and comments about bottlenecks. The semiconductor supply chain is global and there is no way for any one company to be competitive if its business judgement is clouded by elements of nationalism.
Does a fabless Indian semi really care if it's products are fab'd in Taiwan instead of India? The fabless guys in the U.S., Europe and elsewhere don't seem to mind -- they go where the price, yields and capacity meet their needs and allow them to meet their profit goals.
India may not have fun in this area. They are good in design and software because they are naturally patient. In this area, you need another game - clusters to actually benefit from expending this money
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