NXP to invest over $1 billion in R&D over next few years in India, says CEO Kurt Sievers

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The company has four semiconductor design centers in India and about 3,000 employees

Source: Getty image/ Chunyip Wong

NXP Semiconductors has announced plans to invest over $1 billion in India, effectively doubling its research and development efforts. The announcement was made by CEO Kurt Sievers at the Semicon India conference held in Greater Noida, India, as reported by Moneycontrol on Sept. 11.

"NXP is committed to doubling its R&D efforts here in the country in the next few years, which is far in excess of a billion dollars," Sievers said. He also mentioned that the Dutch company is currently in discussions with the automotive sector and other industries in India to expand its footprint.

NXP Semiconductors operates four semiconductor design centers in India, employing approximately 3,000 people. These local R&D centers are focusing on advanced systems, particularly in AI for automotive and other applications.

The company has expressed its intention to apply for the design-linked incentive (DLI) scheme once it is opened to multinational companies. Currently, the DLI scheme is limited to startups, with only seven approved to claim incentives. The Indian government is evaluating the proposal to include large multinationals in its $200 million DLI scheme, provided they design chips within the country.

India has become a hub for semiconductor research and design, with major players such as Nvidia, Qualcomm, AMD, Intel and MediaTek establishing substantial centers in the country. Prime Minister Narendra Modi highlighted India's growing contribution to the global semiconductor industry, noting that the country is preparing an 85,000-strong workforce of technicians, engineers, and R&D experts.

NXP is also actively collaborating with India's startup ecosystem, seeking to support companies in their growth phases. This collaboration is part of a broader strategy to integrate more deeply into the Indian market and leverage local talent.

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