India Eyes Role as China's Alternative with Three Semiconductor Ventures


India Eyes Role as China's Alternative with Three Semiconductor Ventures
India is positioning itself as a strong contender to China in the global chipmaking industry by hosting the Semicon exhibition for the first time. Prime Minister Narendra Modi has launched three semiconductor projects valued at Rs 1.25 lakh crore, with the goal of transforming India into a significant semiconductor hub.
The projects are anticipated to create substantial employment opportunities, with TEPL's greenfield project alone generating over 30,000 jobs. India's rise as a major player in the global semiconductor supply chain signifies a strategic shift in global supply chains and highlights India's potential as a global technology powerhouse.
Union Railways and IT Minister Ashwini Vaishnaw stated that India has commissioned four semiconductor manufacturing units and, in the next five years, the country will become one of the biggest semiconductor hubs in the world. This ambitious vision is supported by projections from Hong Kong-based Counterpoint Technology Market Research, which estimates that India's semiconductor-related market will reach $64 billion in 2026, nearly triple the size in 2019.
The Indian government's commitment to the semiconductor industry is further demonstrated by the presence of key figures at the foundation stone-laying ceremony. Union Minister Ashwini Vaishnaw, Minister of State (MoS) Rajeev Chandrasekhar, Ministry of Electronics and Information Technology(MeitY); Himanta Biswa Sarma, Chief Minister (CM) of Assam; Bhupendra Patel, CM of Gujarat; Vellayan Subbiah, Chairman of CG Power & Industrial Solutions Ltd.; and Natarajan Chandrasekaran, Chairman of Tata Sons were present on the occasion.
The semiconductor projects are projected to create significant employment opportunities, with TEPL's greenfield project alone expected to generate over 30,000 jobs. This supports Prime Minister Modi's assertion that India delivers on its commitments, reflecting his government's dedication to establishing the country as a semiconductor manufacturing hub.
The growth of India's semiconductor industry extends beyond large corporations. Two Karnataka-based companies, Saankhya Labs (a subsidiary of Tejas Network) and Sensesemi Technologies, have received approval under the Design-Linked Incentive (DLI) Scheme. These firms are developing advanced technologies such as Systems on Chip (SoC) for Internet of Medical Things (IoMT) and IoT devices, further strengthening India's position in the global semiconductor market.
India's rise as a promising alternative to China for chipmaking equipment firms marks a significant development in the global semiconductor industry. Backed by the government's strong commitment, strategic investments, and increasing attractiveness as a manufacturing hub, India is on the path to becoming a major player in the global semiconductor supply chain. This shift signifies a strategic realignment of global supply chains and highlights India's potential as a global technology powerhouse.