The West Asia conflict could delay India's semiconductor projects owing to logistical bottlenecks that have squeezed the supply of speciality gases, chemicals and metals, said people aware of the matter. These include the Tata Electronics fab in Dholera as well as assembly and test facilities being set up by the Tata company, CG Semi and Micron and others.
“The Indian semiconductor projects are likely to face delays on account of war and significant cost overrun due to effects of supply chain disruptions," said one of the persons cited. “The Tata Electronics fab in particular is expected to be hit the worst owing to the sheer size and scale of the project but the impact is being felt with other OSAT (outsourced semiconductor assembly and test) projects as well. Tata Electronics was airlifting materials but that is not viable in the long run because it cannot cater to the large volumes needed for such a project and is prohibitively expensive.”
