India is on the verge of becoming a major semiconductor manufacturing hub, according to Ashwini Vaishnaw, the Union Minister for Electronics and Information Technology. His recent remarks highlight the significant investments flowing into the semiconductor sector in the country, indicating a shift in the global manufacturing landscape.
During a roundtable discussion in New York, Prime Minister Narendra Modi engaged with top executives from the technology sector. Vaishnaw noted that three leading CEOs expressed a level of enthusiasm for India that they hadn’t seen in 35 to 40 years. This level of interest from major industry players underscores the momentum building in India’s semiconductor ambitions.
The Indian government has already approved five proposals for semiconductor manufacturing, amounting to an impressive investment of nearly ₹1.52 lakh crore. This financial commitment is poised to transform India's capabilities in this crucial industry.
One of the key developments highlighted by Vaishnaw is that Micron Technology is set to produce its first made-in-India chips by early 2025. Construction for various semiconductor facilities, including CG Power's plant and Tata’s Advanced Technology Manufacturing Plant (ATMP) in Assam, is progressing well, further solidifying India's position in this sector.
The semiconductor industry is considered foundational because chips produced in this industry are integral to a wide array of devices. From medical instruments and mobile phones to cars, laptops, and televisions, semiconductors play a vital role in modern technology.
The growth of this industry aligns with Prime Minister Modi’s vision of a digitally empowered India, as all initiatives, including the Digital India Mission, aim to bring technology to the common citizen.
Looking ahead, the semiconductor market in India is projected to reach $64 billion by 2026, nearly tripling in size from 2019. This ambitious goal is supported by the ‘Semicon India’ initiative, which offers financial assistance for various sectors of semiconductor production, including front-end fabrication units, sensors, display manufacturing, semiconductor packaging, and compound semiconductors.
Follow us
