NXP Semiconductors, a Dutch chipmaker, plans to bolster its research and development (R&D) footprint in India, aiming to double its presence over the next three to five years. Considering setting up wafer fabrication and testing units in the country, the company is actively exploring options. Additionally, it intends to apply for India's design-linked incentive (DLI) scheme for multinational companies, engaging with the Ministry of Electronics & Information Technology (MeitY) on potential collaboration.

“In the last three years, we have almost doubled our R&D. I see that the same trend will continue for the next three years or three to five years”, Hitesh Garg, India Country Manager of Dutch-headquartered NXP Semiconductors. The company is looking at system design, Artificial Intelligence, software, and hardware competencies. “We are looking at all possibilities for how we continue strengthening our R&D in this region to stay ahead of our competition”.

With over 4,000 engineers spread across its Indian sites in Noida, Bengaluru, Hyderabad, and Pune, the company places significant emphasis on artificial intelligence (AI) at its local R&D centers, aiming to delve into more sophisticated systems, particularly for automotive and other applications, stated Garg. “AI is the game changer. We are using AI in multiple domains on our chips. Also, from the enablement standpoint, we are looking at how we can use AI to be more and more efficient”, he added.

NXP, which has wafer fabrication and semiconductor ATMP facilities in various parts of the world, is also open to setting up these in India and is “very actively” exploring the possibilities. “we are using all the possible manufacturing facilities in the ecosystem [gloally]. We are looking very actively in India. But there is no partnership that we have publicly announced yet…We try to see what best fits our strategy regarding manufacturing node and capabilities”, Garg said.

NXP will also apply for the DLI scheme once the government opens it up to multinational companies. “We are looking forward to options. At least we have some thoughts about making some nice products for India. So, whenever we see an option available to us, we will definitely be pitching for those opportunities with the Indian government”, Garg said.

Currently, the DLI scheme caters exclusively to startups, with seven already approved for incentive claims, while India is deliberating on a proposal to extend the $200 million scheme to encompass large multinational companies, provided they engage in chip design within the nation.

NXP also collaborates closely with the country's startup ecosystem and actively seeks out startups to support its growth through investment opportunities. “We look at investment possibilities very actively. We are looking at the startup ecosystem and how we engage and mentor some of those startups to grow the electronics and semiconductor ecosystem”, Garg said.