Microchip Technology Inc. (NASDAQ: MCHP), a global leader in microcontroller, mixed-signal, analog semiconductor and Flash-IP solutions, is investing approximately $300 million to establish a facility and engineering lab in India and support employment.

Microchip Technology Inc. today announced a long-term investment of $300 million to expand its operations in India, one of the world's fastest-growing semiconductor hubs.

“Microchip is making a significant strategic effort to grow its business in India, which has become a significant business and technology hub for the semiconductor industry,” said Ganesh Moorthy, Microchip’s CEO. “Microchip’s investment in India will benefit Microchip while helping India play an increasingly important role in the global semiconductor industry.”

Microchip's planned investments this time include: 1) further improvements to its facilities in Bengaluru and Chennai and 2) investments in a new R&D center in Hyderabad, which opened on July 3; 3) expansion and enhancement of its engineering labs; 4) support for the technology and business needs of its growing number of large customers in India; and 5) hiring to tap into India's growing talent pool. It includes acceleration, sponsorship of technology associations and support for academic institutions/programs, and launching of various CSR (corporate social responsibility) programs tailored to regional needs.

Microchip currently employs approximately 2,500 people in India, playing a key role in the company's semiconductor design and development, sales and support, IT infrastructure, and application engineering operations.

They support 2,000 local customers and make critical contributions across more than 25 business units developing solutions for the industrial, automotive, data center, aerospace and defense, communications and consumer electronics sectors, supporting and enhancing Microchip's business objectives.

“Microchip’s investment in India over the past 25 years has fostered the growth of exceptional talent and made India a hub of engineering excellence and solutions that are driving Microchip’s global success,” said Krishna Moorthy, president and CEO of the Electronics and Semiconductor Industry Association (IESA). “With this announcement, we look forward to continued growth and meaningful progress for Microchip in India.”

Meanwhile, IESA and Counterpoint Research recently announced that the Indian semiconductor market will roughly triple in size to reach $64 billion by 2026 compared to 2019.

According to a white paper released by the Semiconductor Industry Association (SIA) in February 2023, India accounts for 20% of the global semiconductor design workforce, and in a joint announcement in January 2023, IESA and SIA announced that they will work together to develop and grow India's potential for the future of the semiconductor industry, building on its achievements as a major hub for semiconductor research, chip design and equipment engineering.all.