According to the company, the strategy will solve the chip shortage challenge, which is also affecting its electronics and telecom businesses
Reliance industries backed by business tycoon Mukesh Ambani has now started finding ways to enter into the semiconductor manufacturing business, a strategy that could solve the challenge of the supply chain and meet the increasing demand of chipset in India, claims two unnamed people who know the move in detail.
From telecom to energy sector backed by the central government, the company has been in discussions with a couple of global chip manufacturers who have the possibility to become the technology partners, mentioned one of the unnamed persons who know everything about this venture from top to bottom. The person said, “There is intent, there is no timeline. Reliance has yet to make a call on whether they want to ultimately invest."
The unnamed sources were not supposed to speak to the media on behalf of the company yet. Previously, the company also showered its interest to foray into the semiconductor industry, but media did not report it. Therefore, when the media now reached Reliance for the first time for official comment, the company did not respond to any queries. PM Modi has already declared that very soon India would turn into a global semiconductor manufacturing hub, but back in 2021, the ambitions have faced various setbacks.
The sources have also added that Reliance is looking for merit to foray into semiconductor business as the strategy will solve the chip shortage challenge, which is also affecting its electronics and telecom businesses. For instance, in 2021, the company overtly delayed the launch of its low cost smartphone in association with Google, stating chip production slump.
It’s not only in India, but throughout the world the demand is escalating. According to the government of India’s forecast, India’s semiconductor market will reach around $80 billion by 2028, which is now $23 billion.
