Dutch Chipmaker NXP Plans New Unit in Greater Noida in $1 Billion Expansion

NXP Initiates Land Acquisition for Second Research Facility in Greater Noida

Dutch semiconductor giant NXP Semiconductors is taking a significant step toward its ambitious $1 billion investment plan in India by scouting land in the Greater Noida Semiconductor Park to establish a second research and development (R&D) centre. The move, focused on Sector 10 under the Yamuna Expressway Industrial Development Authority (YEIDA) jurisdiction, reflects NXP’s intent to deepen its footprint in the country, particularly in Uttar Pradesh.

Government sources confirmed that NXP’s senior management is actively negotiating land acquisition with YEIDA officials to develop infrastructure for R&D, system innovation, and lab facilities. This marks the first concrete action following CEO Kurt Sievers’ expansion announcement last year.

Highlights:

• NXP targeting land in Sector 10, Greater Noida Semiconductor Park for new R&D centre.

• Engagement with YEIDA and UP government signals strong local commitment.

• Expansion part of $1 billion investment over five years announced by CEO Kurt Sievers.

Strategic Discussions and Government Engagement Accelerate Expansion Plans

NXP’s CEO Kurt Sievers met with the Uttar Pradesh Chief Minister during Semicon India 2024 and followed up with further discussions in October 2024. These interactions underscore the company’s bullish outlook on India’s semiconductor ecosystem and their commitment to scaling operations.

A source close to the talks noted, “After meetings with YEIDA officials and encouragement from the Uttar Pradesh government at Semicon India 2024, NXP decided to pursue this opportunity,” reflecting strong public-private sector collaboration.

NXP India has yet to publicly comment on the land acquisition or expansion details.

Highlights:

• Sievers’ meetings with UP government at Semicon India 2024 boosted NXP’s investment confidence.

• Company decision driven by active engagement with YEIDA officials.

• Formal response from NXP India on new facility is pending.

Focus on Advanced R&D and Workforce Expansion

At Semicon 2024, NXP outlined its plan to invest $1 billion over five years to expand both hardware and software R&D capabilities in India. The expansion will focus on cutting-edge technologies including 5-nanometer automotive chips, artificial intelligence, and automotive innovation, pivotal sectors in NXP’s global growth strategy.

NXP aims to double its India workforce from 3,000 to over 6,000 employees, with design engineers comprising more than 80% of its current Indian workforce continuing to form the core of this growth.

The company forecasts India’s contribution to global revenue to rise to 8-10% in the next 3 to 5 years.

Highlights:

• $1 billion planned investment targets hardware and software R&D.

• Focus on AI, automotive innovation, and advanced semiconductor technologies.

• Workforce to expand to 6,000+, with design engineers as majority.

• India expected to contribute 8-10% of NXP’s global revenue soon.

Greater Noida Semiconductor Ecosystem Gains Momentum

Greater Noida is also poised to become a semiconductor manufacturing hub with the first semiconductor plant being established by the HCL Group and Foxconn with an investment of Rs 3,700 crore. The Indian government recently approved a sixth semiconductor facility under the India Semiconductor Mission, adding to five facilities currently under construction.

Key semiconductor units include:

• Micron Technologies, Kaynes Technologies, CG Power-Renesas Electronics, Star Microelectronics in Sanand, Gujarat.

• Tata Group’s plants in Dholera, Gujarat, and Assam.

YEIDA has issued letters of intent (LoI) to multiple semiconductor firms, including Aditech Semiconductors and Tarq Semiconductors (Hiranandani Group), although Kaynes Semicon moved its OSAT unit to Gujarat.

Highlights:

• Greater Noida’s first semiconductor plant being built by HCL-Foxconn.

• Sixth India Semiconductor Mission unit approved recently.

• Multiple advanced semiconductor plants under construction across Gujarat and Assam.

• YEIDA actively supporting semiconductor ecosystem with LoIs issued to several firms.