Prime Minister Narendra Modi on Wednesday pitched India as a prime destination for semiconductor investments, emphasising the need for resilient supply chains to support the global economy.
Addressing delegates at the SEMICON 2024 conference near the national capital, Modi highlighted the country's ambitions to become a major player in the semiconductor industry, driven by reforms, stable policies, and a strong domestic market.
“Resilience of the supply chain is very important,” the Prime Minister stated, reflecting on the lessons learned during the Covid-19 pandemic. “Whether it was Covid or war, there hasn’t been a single industry to remain unaffected by supply chain disruptions.”
Modi pressed on India’s strategic role in building supply chain resilience across sectors.
“India is working to create the same in different sectors of the economy,” he said.
The Covid pandemic disrupted supply chains worldwide, impacting industries from electronics to automobiles due to the shortage of semiconductors, which are crucial in every modern electronic device.
Highlighting India's proactive stance, Modi said, “This is the right time to be in India. You are at the right place at the right time.” He also coined a phrase to signify confidence in India's future: “In 21st-century India, the chips are never down. When the chips are down, you can bet on India.”
Semiconductor investments in India
India has set up a ₹76,000 crore programme to encourage chipmakers and their suppliers to establish facilities in the country, aiming to reduce dependence on imports from countries like Taiwan.
The scheme has already attracted investments of nearly ₹1.5 lakh crore, with the capability to produce about 70 million chips per day.
Modi highlighted several ongoing projects, including Tata's collaboration with Taiwan's Powerchip Semiconductor Manufacturing Corp to build India's first chipmaking plant in Dholera, Gujarat, at a cost of ₹91,526 crore. Tata's subsidiary, Tata Semiconductor Assembly and Test Pvt Ltd, is also investing ₹27,120 crore to set up a unit in Assam.
Other significant investments include US-based Micron Technology Inc.'s ₹22,516 crore assembly facility in Gujarat and Adani Group’s ₹83,947 crore chip plant in Maharashtra in partnership with Israel’s Tower Semiconductor.
Additionally, CG Power, in collaboration with Japan's Renesas Electronics Corp and Thailand’s Stars Microelectronics, plans to establish a ₹7,584 crore chip packaging plant in Gujarat.
“India’s semiconductor sector is on the brink of a revolution, with breakthrough advancements set to transform the industry,” Modi said, spotlighting the country's readiness to lead the global semiconductor landscape.
Workforce and infrastructure development
The Prime Minister detailed the government’s efforts to cultivate a skilled semiconductor workforce, aiming to train 85,000 technicians, engineers, and R&D experts.
He pointed out that while India's contribution to global semiconductor design is 20%, the country is working to expand its manufacturing capabilities.
He explained that India’s strength lies in a "three-dimensional power"—a reformist government, a growing manufacturing base, and an aspirational market that is technology-savvy. “This base of 3D power is difficult to find elsewhere,” he noted.
Modi emphasised India's growing digital infrastructure, which relies heavily on semiconductors.
“This small chip is doing big things to ensure last-mile delivery in India,” he said, referring to digital platforms such as UPI, RuPay Card, DigiLocker, and DigiYatra that have become integral to daily life in India.
Policies and future ambitions
The Prime Minister emphasised India's comprehensive support for semiconductor manufacturing, including 50% financial support from the government for setting up such facilities.
State governments are also playing a crucial role in this initiative, creating a conducive environment for investors.
"Our dream is that every device in the world will have an Indian-made chip," Modi declared. He added that the government is committed to taking all necessary steps to make India a semiconductor powerhouse.
Modi also discussed India's progress in recent years, highlighting that the country is now the second-largest market for 5G handsets globally, just two years after rolling out 5G technology.
He expressed a broader vision to grow India's electronics sector to $500 billion and create six million jobs by the end of the decade. This growth, he said, would directly benefit India's semiconductor sector.
“Our goal is that 100% of electronic manufacturing should happen in India. India will make semiconductor chips and the finished product too,” he said.
Semiconductor revolution
As the US-China trade war threatens to drive up the cost of chip imports, countries worldwide are racing to develop their domestic semiconductor industries. Semiconductors are vital for various technologies, from smartphones and electric vehicles to artificial intelligence.
The Prime Minister reiterated that India's semiconductor industry is equipped with special diodes, allowing energy to flow in both directions, and that this technological capability would serve as a foundation for further advancements.
During his speech, Modi spotlighted the importance of self-reliance in every sector and India’s efforts towards a green transition on a large scale. He noted the rising demand for data centres in the country, adding that India is set to play a pivotal role in driving the global semiconductor industry.
"With strong government support, a skilled workforce, and substantial foreign investment, India is positioning itself as a global hub for semiconductor manufacturing," PM said.
“Today’s India inspires confidence in the world... When the chips are down, you can bet on India,” PM Modi added, inviting global investors to be part of India’s semiconductor revolution.
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