MIC Electronics Limited on Wednesday announced that it has signed a Memorandum of Understanding (MoU) with Singapore-based Top2 PTE Limited to identify and finalize a semiconductor fabrication partner from Taiwan. In a regulatory filing to stock exchanges, the company informed that the agreement has been executed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
As part of the plan, MIC Electronics is targeting an initial monthly production capacity of 25,000 to 30,000 semiconductor wafers. This target, however, is subject to feasibility studies, regulatory clearances, and successful negotiations with potential partners.
“The purpose of this MoU is to establish a framework under which MIC shall engage Top2 to explore, identify, and finalize a semiconductor fabrication partner from Taiwan. The objective is to initiate semiconductor wafer production with a monthly target capacity of 25,000 to 30,000 wafers, subject to feasibility, negotiations, and regulatory compliance,” the company said in its exchange filing.
The company further clarified that there is no shareholding involved in the entity with which the MoU has been signed. Additionally, the agreement does not confer any special rights such as board appointments or preferential capital rights. MIC also confirmed that the agreement does not fall under the category of related party transactions.
The announcement comes against the backdrop of multiple incentive schemes introduced by the Government of India in recent years to attract global semiconductor companies and boost local manufacturing capabilities.
For MIC Electronics, a company traditionally engaged in LED displays and electronic solutions, this development marks a significant diversification into the highly strategic and technology-intensive semiconductor sector.
Globally, the semiconductor industry has emerged as one of the most critical sectors, driven by rising demand across industries such as automotive, consumer electronics, industrial automation, and emerging technologies including 5G and artificial intelligence. Taiwan, home to leading global foundries, continues to remain central to the semiconductor value chain.
In its filing, MIC added that any amendments, termination, or changes to the MoU will be duly disclosed to stock exchanges, in compliance with regulatory requirements.
India is projected to become a USD 100 billion semiconductor market by 2030, positioning the country as a key destination for semiconductor growth and investment.
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