Semiconductor Factory to Be Built in Kolkata – Will Mobile Phone Prices Finally Drop?
📅 Date: July 1, 2025
📝 Report:
Not Delhi. Not Mumbai. Not Bengaluru. Not even Hyderabad. In a surprising move, GlobalFoundries, the world’s third-largest semiconductor manufacturer after TSMC (Taiwan) and Samsung (South Korea), has chosen Kolkata as the site for its next major semiconductor fabrication plant and R&D center.
This marks a historic moment for West Bengal, as the long-cherished dream of manufacturing semiconductors in the state is set to become a reality.
⚙️ What Will Be Made in Kolkata?
The upcoming facility in Kolkata will primarily manufacture 28nm to 24nm semiconductor chips, widely used in:
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Mobile phones
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Electric vehicles
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Artificial intelligence systems
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Consumer electronics
The plant will be backed by multi-crore investments, and alongside chip production, it will also host a state-of-the-art research and development center, helping Kolkata emerge as a serious player in the global tech landscape.
🌏 Global Impact and Strategic Shift
With this move, India reduces its dependency on countries like Taiwan, South Korea, and China for chip imports. The decision is also a significant step toward India’s self-reliance in electronics manufacturing under the “Make in India” mission.
Experts believe that once operational, Kolkata will find its place on the global semiconductor map, alongside renowned hubs like Hsinchu (Taiwan), Dresden (Germany), and Malta (USA).
👨💻 Why Kolkata and Not Bengaluru or Hyderabad?
According to industry analysts, there are three key reasons why Kolkata was selected:
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Abundant supply of clean water and electricity, essential for semiconductor fabrication.
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A growing pool of highly skilled IT professionals in the city.
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Lower operational and infrastructural costs compared to cities like Bengaluru.
This strategic decision could transform Kolkata into a tech and manufacturing hotspot in the years to come.
📉 Will Mobile Phone Prices Drop?
Yes — but not immediately.
With semiconductor chips being produced domestically, import costs will decrease, reducing the manufacturing expenses of smartphones, EVs, and consumer electronics.
Additionally, supply chain issues, often caused by global shortages, can be better managed through in-country production.
However, analysts caution that price drops won’t be instant. Gradual reductions in smartphone prices are expected as production stabilizes and supply becomes consistent.
