India to Get Two Multi-Billion Dollar Semiconductor Plants: Rajeev Chandrasekhar
India is poised to see the development of two significant semiconductor fabrication plants, accompanied by several chip assembly and packaging units, as announced by Minister of Electronics and IT, Rajeev Chandrasekhar. Chandrasekhar disclosed that one of these ventures entails an $8 billion investment proposal from Tower Semiconductors based in Israel, while the other originates from Tata Group.
Chandrasekhar underscored the importance of the upcoming fabrication plants, which will employ technologies ranging from 65 to 28 nanometers, in addition to evaluating different packaging proposals. He noted that approval for these projects is anticipated during the third term of Prime Minister Narendra Modi unless they are cleared prior to the upcoming general elections.
The government has been presented with four proposals for semiconductor manufacturing plants and 13 for units focusing on chip assembly, testing, monitoring, and packaging. This news coincides with the ongoing development of a chip assembly plant by Micron, a US-based company, in Gujarat, with an investment of Rs 22,516 crore.
Contemplating India's path in the semiconductor industry, Chandrasekhar emphasized the advancements achieved since 2014, especially following the initiation of the semiconductor program in January 2020. He stressed the imperative to address the opportunities missed over the past 75 years and highlighted notable advancements in semiconductor design, startup ventures, research, talent cultivation, packaging, and fabrication.
Government data indicates a substantial increase in domestic electronics manufacturing over the past decade, with the sector expected to grow further to Rs 23,95,195 crore by 2026. Chandrasekhar also advocated for reducing import duties on electronic components to facilitate export-led manufacturing, drawing inspiration from Andrew Grove's philosophy of "Only the Paranoid Survive."
India's position within the global electronics supply chain has been evolving, witnessing a transition away from China towards alternative hubs. Chandrasekhar underscored India's role in facilitating this shift and emphasized the nation's aspirations to emerge as a global leader in electronics manufacturing. He pointed out accomplishments in mobile handset production and export as evidence of this ambition.
With 99.20 percent of mobile handsets now produced domestically, India is poised to extend its achievements in electronics manufacturing, setting its sights on reaching $300 billion by 2026-27. Chandrasekhar conveyed optimism about India's capacity to establish itself as a reliable participant in the global value chains for electronics, encompassing smartphones, IT hardware, laptops, servers, and various hardware components.
