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India has asked Samsung to set up a chip company in the country

The Indian government appears to have asked Samsung to set up a chip company in the country to increase production. Samsung is currently one of the largest chipmakers in the world, but it still lags far behind TSMC. The company that makes all of Apple's chips, and it does a tremendous job. Unlike its Taiwanese rival, the Korean company has not performed well at all in the field of chip production and has lost its customers. For example, Qualcomm was not at all satisfied with the status of the Snapdragon 8th generation chip and is said to want to outsource the production of the Plus model to TSMC.

In order to compete with TSMC, Samsung needs to Both improve its performance and expand its business. In this way, it can receive more orders and attract more customers. The Indian government, aware of the need for Samsung, decided to offer the Korean company a chip plant in the country. This will benefit both India and Samsung itself. Of course, it seems that the Indian government has not made such an offer only for Samsung. The country apparently wants to subsidize any company that decides to build a chip plant in India.

The Indian government appears to have invested a total of $ 10 billion to enable companies to do so. To encourage the construction of a chip production plant in the country. By doing so, India will become one of the chip manufacturing hubs in the world and can eliminate one of the reasons for the shortage of chips in the world in terms of labor force. If Samsung wants to respond positively to this direct invitation from India, it could be very useful for the company itself, as Samsung is currently assembling its handsets in India. In fact, the largest phone assembly company in the world is owned by Samsung and is built in India, which is a building with an area of 141.640 square meters, which is extremely large.

According to published information, the cost of semiconductor consumption in India from $ 21 billion in 2019 will increase to $ 400 billion in 2025. Although the country has grown exponentially in the field of semiconductor design from 2015 to 2020 (from $ 14.5 billion to $ 52.6 billion), the number of companies in the country that produce chips is still not so large and needs much more.

All actions are currently in the early stages, which means we do not know if Samsung will reach an agreement with the Indian government on this issue. For now we have to wait and see what happens. As it turns out, setting up a chip company in India will benefit both Samsung and the Indian government, as it could become a very important country.

Samsung to compete with TSMC Needs to increase the quality of his work. Naturally, building a company for this purpose will cost Samsung dearly, and if the Korean company wants to do so with this weak trend, it will definitely fail. Qualcomm is now rumored to have approached TSMC to work with Samsung to replace the chip. MediaTek has come a long way since partnering with TSMC, comparing its 9,000-dimensionality to Apple's A15 chip, and Apple no longer has much to do with Samsung. Even Exynos chips perform so poorly that if Samsung could, it would outsource the production of these chips to TSMC. However, it is currently rumored that Samsung wants to work with TSMC and IBM on new chip design technology that will significantly increase its processing power. We hope that Samsung will eventually be able to produce powerful chips so that the competition can continue in the meantime.


Source: SamMobile

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