India and Taiwan have started negotiations for a free-trade agreement FTA and setting up a semiconductor manufacturing hub in an Indian city, signalling their resolve to further expand the two-way economic engagement.
The Indian government has already proposed a number of sites for the facility and one of Taiwan’s leading semiconductor producers, including the Taiwan Semiconductor Manufacturing Company (TSMC) and the United Microelectronics Corporation (UMC), may implement the mega project.
Considering the business and manufacturing is of heavy capital requirement
Even for the giants like TSMC it would take 2-4 years to build and start their business.
The intent may be is to start with 32nm or 22nm chips for components such as TV, refrigerator etc and then move up the value chain.
While <5nm is goal, my guess is india will start with more older chip sets largely used in Cars (which currently auto industry is facing the shortage)
and other equipment. First chip produce out of india might won’t be 5nm.
It is very curious to know the name of companies (listed or unlisted) who are in getting into this buisness in near future.