Prime Minister Modi Inaugurates SEMICON India 2024, Aiming for Indian-Made Chips in Every Device Globally
Prime Minister Narendra Modi inaugurated the “SEMICON India 2024” conference, declaring a vision where every electronic device in the world would have a chip made in India. This marks a significant milestone for India’s ambitions in the semiconductor sector, aiming to establish itself as a global leader in chip manufacturing.
Growing Demand for Semiconductors in India
The demand for semiconductors in India is rapidly increasing, as they are a critical component in every modern technology. From mobile phones to satellites and keyboards, semiconductors are essential in almost all electronic devices.
Historically, only a few countries have dominated the semiconductor industry. During the COVID-19 pandemic, disruptions in the supply chain caused significant losses, emphasizing the need for more countries, including India, to have domestic chip production capabilities.
On India’s 78th Independence Day, Prime Minister Modi reaffirmed the nation’s commitment to becoming a global leader in semiconductor production. Following this, during his visit to Singapore, a key agreement was signed between India and Singapore to develop semiconductor clusters, focusing on design and production.
India’s Semiconductor Market and Growth Potential
Currently, the Indian semiconductor market is valued at approximately $23.2 billion. It is projected to grow to $110 billion by 2030. India is gradually positioning itself as a global hub for semiconductor manufacturing, despite being 12 generations behind in global competition.
India’s semiconductor journey began in 1984 with Semiconductor Complex Limited (SCL) in Chandigarh, which started producing semiconductors with a 5000 nm process. Unfortunately, a fire in 1989 destroyed the entire plant. While the UPA government, led by Manmohan Singh, announced a semiconductor policy in 2006, it remained largely on paper, allowing China to capitalize on the opportunity and leap ahead in the global semiconductor race.
Despite this, India has made steady progress. It is now producing discrete semiconductors used in basic electronic operations, light-related integrated circuits, and optoelectronic sensors.
Government Support and Policy Initiatives
Under Modi’s leadership, the government has launched a comprehensive semiconductor policy, offering a 50% uniform incentive for design, manufacturing, and packaging, encouraging companies to establish chip production facilities in India.
Currently, semiconductor projects worth ₹1.25 lakh crore (approximately $15 billion) are being implemented under India’s “Chips for a Self-Reliant Bharat” initiative. India is also witnessing investments from major semiconductor-producing countries like South Korea, Taiwan, and China, which dominate global chip production.
India is now ready to handle all stages of chip production, including design, fabrication, testing, and assembly, aiming to become self-sufficient in semiconductor manufacturing.
Major Global Players Investing in India
Leading global semiconductor manufacturers like Intel, AMD, and Qualcomm have already set up research and manufacturing centers in India. Last year, U.S.-based Micron Technology opened an Assembly, Testing, Marking, and Packaging (ATMP) plant in Gujarat, further solidifying India’s place in the global semiconductor supply chain.
In addition to Micron Technology, companies like Tata Electronics, Tata Semiconductor Assembly and Test Pvt Ltd, CG Power, Kaynes Semicon, and others have entered the semiconductor production space. It’s also anticipated that two companies from the Adani group will soon begin semiconductor manufacturing.
Larsen & Toubro Limited has also announced plans to invest over $300 million in semiconductor production, aiming to design 15 products by the end of this year and begin sales by 2027.
India’s Role in the Global 5G and Mobile Phone Market
India holds the distinction of having the second-largest 5G smartphone market in the world. Moreover, India has emerged as the second-largest producer and exporter of mobile phones globally, further highlighting its growing importance in the global electronics sector.
Workforce Development and Employment Growth
The Indian government is committed to creating a skilled workforce of 85,000 engineers and tech specialists in the semiconductor sector over the next 10 years. It is also expected that the burgeoning semiconductor industry in India will generate 1 million jobs in the next five years, providing a significant boost to employment in the country.
Prime Minister Modi’s Vision for India’s Semiconductor Future
At the SEMICON India 2024 conference held in Greater Noida, Uttar Pradesh, themed “Designing the Future of Semiconductors,” Prime Minister Modi expressed his belief that India will become a global hub for semiconductors. He also emphasized that India, having already attracted $150 billion in investment, will see $500 billion more in the next decade, particularly in the electronics sector.
Earlier, speaking at the 2nd International Conference on Green Hydrogen, Modi shared a vision to make India a global center for the production, utilization, and export of green hydrogen. He encouraged scientists to suggest necessary changes to public policies related to green hydrogen production, signaling India’s forward-looking stance on clean energy alongside its semiconductor ambitions.
Advances in India’s Semiconductor Industry… Policy and Support
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