MIC Electronics Signs MoU to Secure Taiwan Chip Partner

• MIC Electronics signs MoU with Top2 PTE for Taiwanese chip partner.
• Targets 25,000-30,000 wafer production monthly, pending approvals.
• India’s semiconductor market to reach USD 100 billion by 2030.

Hyderabad-based MIC Electronics Limited has signed a Memorandum of Understanding (MoU) with Singapore's Top2 PTE Limited to locate and secure a partner Taiwanese semiconductor fabrication, a proposal that was reported to the stock exchange media. The information was in a filing as per Regulatory 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 requirement. The understanding would put in place the ability to commence semiconductor wafer production to the order of 25,000 to 30,000 wafers per month. This would be subject to a feasibility study, regulatory approvals, and successful negotiations with the prospective Taiwanese partner.

The MoU represents an important milestone with contracts for MIC Electronics, who have generally been an established provider of LED displays and other electronic products, moving into the high-risk semiconductor industry. The company also indicated in their announcement that the agreement does not include any equity interests, no special rights, and no related party transactions, so it appears they are being operationally as transparent as they can. Changes, amendments, and termination of the MoU will be announced to the stock exchanges as required under the regulations.

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The government of India has devised multiple incentive schemes to attract the international semiconductor industry and to increase local manufacturing, as India is projected to grow to a USD 100 billion semiconductor market by 2030. This partnership capitalizes on Taiwan's critical role in the international semiconductor supply chain, which accommodates leading foundries that provide chips to industries such as automotive, consumer electronics, 5G, and artificial intelligence, all of which are seeing an increased demand for chips.

For MIC Electronics, this direction is significant shift towards a technology-heavy area taking advantage of India's ambitions towards self-reliance in semiconductor manufacturing. The joint venture with Top2 PTE Limited heralds a period of focus on maximising technology and resources to help MIC Electronics participate in India's growing semiconductor area providing its share of advancing India's tech ecosystem and meeting the global demand of the growing need for more chip technology.