Reliance In Talks With Potential Partners For Chipmaking: Report As per the report, India's government has forecast the domestic chip market will be worth $80 billion by 2028 compared with $23 billion currently
By Teena Jose
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Billionaire Mukesh Ambani's Reliance Industries has begun exploring a foray into semiconductor manufacturing, a move that could address its supply chain needs and cater to growing chip demand in India, according to a Reuters report citing two people familiar with the development.
The telecoms-to-energy conglomerate, encouraged by the Indian government, has held early-stage talks with foreign chipmakers that have the potential to become technology partners, said the sources.
"There is intent, there is no timeline, and Reliance is yet to make a call on whether they want to ultimately invest," the report added.
Reliance, India's IT ministry and Prime Minister Narendra Modi's office did not respond to media requests for comment.
As per the informers, Reliance sees merit in getting into semiconductors as the move would help safeguard against chip shortages that could affect its telecom and electronic devices businesses.
Demand for semiconductors in India and globally is also increasing, they noted. Reportedly, India's government has forecast the domestic chip market will be worth $80 billion by 2028 compared with $23 billion currently.
Earlier, a joint venture between Foxconn and Vedanta for chipmaking didn't go well. Later on plans by ISMC, a venture between Abu Dhabi-based Next Orbit Ventures and Israel's Tower Semiconductor, to invest $3 billion in India also collapsed.
Reliance has for months been considering an investment of $300 million that would give it a 30% stake in the venture, a third source with direct knowledge of discussions told Reuters.
