Taiwan's MediaTek, a major global chip designer, is expressing interest in sourcing chip production from India as the country develops its semiconductor manufacturing capabilities. This move aligns with India's ambition to become a semiconductor hub, supported by the government's $10 billion incentive package aimed at attracting global chipmakers.
MediaTek, which designs and contracts the production of chips for smartphones, automotive systems, and smart home devices for brands like Xiaomi, Samsung, Oppo, and Vivo, currently outsources its chip fabrication to foundries like TSMC, Intel Foundry Services, and GlobalFoundries. However, the company is prepared to manufacture its chips in India once semiconductor fabrication facilities are operational in the country.
Anku Jain, Managing Director of MediaTek India, stated that localizing chip production would make business sense as electronics and automotive manufacturing rise in India. He noted the synergy between India's consumption and manufacturing base, stating, "If consumption is in India and manufacturing is in India, that's good for us. It makes business sense, certainly it's a good thing to do. Things can be done to Make in India".
India's semiconductor market is substantial, reaching $38 billion in 2023 and projected to hit $45 to $50 billion in 2024-25, with expectations of $100 to $110 billion by 2030. The global semiconductor market is projected to reach $1 trillion by the same year. Currently, India imports nearly all its semiconductor requirements, despite being a major consumer of electronic goods. The government's incentive program aims to change this by encouraging domestic chip production.
Several projects are underway as part of India's semiconductor mission, encompassing chip design, fabrication, and testing facilities. For MediaTek, local production could lead to shorter supply chains, reduced costs, and greater resilience against global disruptions.
MediaTek already has a strong research and development presence in India, with over 1,000 engineers engaged in R&D in Noida and Bangalore. These engineers are working on hardware and software design aspects, contributing to MediaTek's global teams and focusing on the latest technologies and product lines. The company plans to further expand its engineering manpower in India.
In addition to smartphones, MediaTek's chipsets power various devices, including smart TVs, tablets, Chromebooks, and routers. The company is also expanding into sectors like automotive, partnering with JioThings for 4G smart clusters for two-wheeler EVs and supplying infotainment systems for cars like Skoda Slavia and Tata Punch EV. MediaTek is also exploring opportunities in satellite communications.
MediaTek has been leading India's smartphone chipset market for 20 quarters. In the first quarter of 2025, MediaTek held a 45% market share, followed by Qualcomm at 32%. The company is focused on enhancing its chipsets' photography, gaming, and efficiency, with a particular emphasis on the premium market in India.
MediaTek's interest in manufacturing chips in India signals growing confidence in the country's ability to host advanced manufacturing infrastructure. The company's support could significantly boost local electronics production, create jobs, and strengthen supply chain resilience.
