State-of-the-art chips are used in mobile phones, refrigerators, cars and high-tech industries, and fostering local industry with enabling schemes and policy sweeteners will connect India to an ever-growing global chip market.
Ahamedabad, NFAPost: India’s global semiconductor ambition is getting a “huge response” from every part of the value chain, IT Minister Ashwini Vaishnaw said on Friday exuding confidence that the country will have at least five fabrication units (fabs) over the next 5-7 years, attracting multi-billion dollars in investments.Semiconductor is a “foundational industry” that feeds into almost everything people use in their daily lives, from refrigerators to television, and cars to trains, he said, emphasising the reason behind India’s focus on getting into the global semiconductor manufacturing play.
“So we see a huge response from practically every part of the value chain, from equipment manufacturers, and gas and component suppliers, and from fab to design ecosystem, everyone is interested. I estimate that India will have a minimum of five fabs in the next 5-7 years,” said IT Minister Ashwini Vaishnaw.
“I can, with a high level of confidence, say that in the coming 5-7 years, India will have minimum 5 fabs,” Vaishnaw said. Each Fab requires an investment outlay of $5 billion and above, depending on the node and complexities, he said and underlined that having a basic semiconductor capability tends to have a “multiplier effect”, as it feeds into multiple other industries like electronics manufacturing, mobile manufacturing, laptops, IT hardware.”Practically every manufacturing sector gets a boost,” he explained.
He said India is becoming an attractive location for global semiconductor biggies and investors owing to various factors like skill and talent base, stable and transparent policy, green energy, stable logistics support, and the fact that the nation is seen as a trusted partner to the world.
”All those things have helped,” Vaishnaw said and added that India is becoming part of global semiconductor manufacturing conversations.It is pertinent to mention that India is wooing semiconductor and display manufacturers with USD 10 billion incentive plan, as part of a determined bid to position the country as a global and vibrant hub for electronics production.
State-of-the-art chips are used in mobile phones, refrigerators, cars and high-tech industries, and fostering local industry with enabling schemes and policy sweeteners will connect India to an ever-growing global chip market. As it is, the global semiconductor shortage has emphasised the importance of this critical component in modern-day electronics.
With consumer electronics, mobile phones, automobiles, computers and IoT, set to fuel demand for semiconductors globally, India has identified chip-making as a key priority area for future growth, hoping to attract investments from players looking to diversify their operations from China.Last month, computer storage chip maker Micron announced it will set up its semiconductor assembly and test plant in Gujarat entailing a total investment of USD 2.75 billion (around Rs 22,540 crore).
The total cost of the plant comprises USD 825 million (around Rs 6,760 crore) from Micron and the rest from the government in two phases.”Within a few weeks…Micron project has got the land allocation. They have already started working on the land to prepare the land for construction,” Vaishnaw said.
Some other players too have evinced interest in setting up semiconductor manufacturing base in India. After pulling the plug on their USD 19.5 billion semiconductor JV, Foxconn and Vedanta have now decided to apply for India chipmaking incentives, separately.
Foxconn has said it is working on plans to apply for incentives under semiconductor and display fab programme, as the contract manufacturer pledged its commitment to India. The Taiwanese electronics manufacturing giant said it has been actively reviewing landscape for optimal partners.
Vedanta Group too has made it clear that it remains committed to building India’s first semiconductor and display fabs in Dholera Special Investment Region in Gujarat, and substantial progress has happened to tie up technology and equity partners in semiconductors.
