The Indian company ASM Technologies Limited (BSE: ASMTEC) has signed a Memorandum of Understanding (MoU) with Guidance, Government of Tamil Nadu to invest 250 crores of rupees (approximately €27.5 million) in expanding its capabilities in Electronics System Design and Manufacturing (ESDM) and precision engineering.
The agreement includes the acquisition of 5 acres of land transferred by the state government to build a new center for advanced design and manufacturing in Tamil Nadu, one of the regions fastest establishing itself as a technological manufacturing hub in India.
A strategic commitment to India’s semiconductor future
ASM’s investment comes at a pivotal moment for India’s industry. The country is implementing an ambitious plan to attract semiconductor and electronics R&D centers, with Tamil Nadu and Karnataka positioning themselves as strategic hubs.
The ESDM sector (which integrates everything from electronic boards to automotive, communications, and solar energy systems) has become a priority within the country’s industrial policy. The goal is to reduce reliance on imports and strengthen the local value chain in a global market dominated by Asian giants like TSMC, Samsung, and Foxconn.
Company statements
Rabindra Srikantan, CEO of ASM Technologies Limited, highlighted:
“This agreement marks an important step in our growth journey. With this investment, we are expanding our design and manufacturing capabilities in the ESDM sector, enhancing our expertise in precision engineering for electronics, renewable energies, and semiconductors. We aim to be a competitive global partner and appreciate the Tamil Nadu Government’s support in this process.”
Meanwhile, Preeti Rabindra, ASM’s Director, added:
“Our goal is to create advanced solutions for the ESDM sector and establish ASM as a globally recognized partner. This initiative opens new avenues for innovation and growth, benefiting both us and the local ecosystem.”
Tamil Nadu as a new tech hub
Tamil Nadu already hosts assembly plants and supplier centers for companies like Foxconn, Pegatron, and Tata Electronics, making it one of the drivers of India’s strategy to position itself as an alternative manufacturing hub to China.
With this new investment, ASM aims to complement its presence in Sriperumbudur (Tamil Nadu) and Dabaspet (Karnataka) with a hub focused on design and innovation, aligned with the global trend towards design-led manufacturing: producing not only on demand but also bringing in design and intellectual property.
Comparison with other sector movements
ASM’s move joins a wave of investments in India:
- Micron announced in 2023 a $2.75 billion investment in Gujarat to open a chip assembly and testing plant.
- Foxconn has expanded its operations in Tamil Nadu and Karnataka with iPhone assembly lines and components.
- Tata Group is deploying projects in semiconductors and electric mobility.
While ASM’s investment is smaller in absolute terms, it is highly significant for its focus on ESDM and design, two key areas for India to move beyond just assembly to a higher position in the global technology value chain.
Expected impact
The company expects the new center to generate:
- Highly skilled jobs in design, precision engineering, and advanced manufacturing.
- Increased global competitiveness by meeting standards such as NIST (U.S.) and defense interoperability norms.
- Momentum for the “Make in India” strategy by strengthening a more robust local supply chain.
Conclusion
With this investment, ASM Technologies is not only expanding its manufacturing capacity but also committing to lead India’s transition toward greater technological sovereignty. While countries like the U.S. and the European Union roll out their own semiconductor support plans, India seeks to solidify an ecosystem capable of attracting major manufacturers and fostering local firms that prioritize design and innovation, like ASM.
via: ASM