Earlier this month, the Andhra Pradesh state government in India signed a memorandum of understanding (MoU) with Indichip Semiconductors and its Japanese joint venture partner, Yitoa Micro Technology Ltd (YMTL), to set up a semiconductor manufacturing plant.
The project, which involves an investment exceeding INR14,000 crore (US$1.68 billion), will establish the country's first privately owned Silicon Carbide (SiC) semiconductor fabrication unit.
The facility plans to begin operations with an initial production capacity of 10,000 wafers per month, targeting an expansion to 50,000 wafers within two to three years. This initiative is part of a broader wave of developments in India's power electronics sector, signaling the country's increasing focus on wide-bandgap semiconductors.
In a parallel development, GlobalFoundries recently announced plans to create a comprehensive semiconductor ecosystem in Kolkata, encompassing services and research and development (R&D) operations. The company has also bolstered its capabilities by acquiring the Power Gallium Nitride (GaN) intellectual property portfolio from Tagore Technology.
Meanwhile, the Indian conglomerate Larsen & Toubro (L&T) has indicated plans to establish a semiconductor facility, adding further momentum to India's efforts to become a global hub for advanced semiconductor technologies. The country's SaaS player Zoho has also reportedly expressed interest in this segment.
Market opportunity drives expansion
Wide-bandgap semiconductors, such as silicon carbide (SiC) and gallium nitride (GaN), are gaining significant traction due to their advantages over traditional silicon in applications like power electronics and power amplification.
These technologies are becoming pivotal as India aims to build a strong domestic electronics manufacturing ecosystem, according to Hareesh Chandrasekar, co-founder of Agnit Semiconductors.
"The market for both GaN and SiC is experiencing rapid growth with strong customer demand," Chandrasekar said. "We're just picking up quite early in the adoption curve for these technologies, and that's where the promise lies."
These advanced, production-proven technologies offer high-power density solutions designed to enhance efficiency and performance across a range of power applications. Key sectors benefiting from these innovations include automotive, the Internet of Things (IoT), and AI-driven data centers.
"As the digital world continues to evolve with technologies like Generative AI, GaN stands out as a pivotal solution for sustainable and efficient power management, particularly in data centers," GlobalFoundries stated in its acquisition announcement.
"Implementing GaN or SiC technology presents a more manageable challenge compared to establishing cutting-edge silicon fabs, which require significantly more capital investment," explained Chandrasekar.
Compared to traditional silicon-based semiconductors, GaN and SiC offer distinct advantages. "Whether it's power amplification, power electronics, or other applications, these discrete solutions become tractable problems when you have the right technology," Chandrasekar added.
Strategic partnerships key to success
Chandrasekar highlighted the critical role of strategic partnerships in successfully implementing wide-bandgap semiconductor technologies. "The right technology partner is key for successful implementation of these technologies," he said.
While the rapid obsolescence of technology is a factor to consider, Chandrasekar believes the overall potential of GaN and SiC technologies far outweighs the challenges.
"The obsolescence rate of technology is one factor, but the combination of market potential, technological readiness, and manageable setup costs make GaN and SiC attractive options for investment and development," he explained.
With India well-positioned to capitalize on the early stages of its adoption curve, GaN and SiC technologies present compelling opportunities for the country's semiconductor industry as it works to establish a robust domestic electronics manufacturing ecosystem.