According to estimates, India’s semiconductor consumption will exceed 80 billion USD by 2026 and 110 billion USD by 2030. It requires a domestic ecosystem that can sustain supply without being dependent on volatile global supply chains.
The need to have a robust semiconductor ecosystem in the country has become necessary, with other countries investing in chip manufacturing to fight shortages. India has scaled up its strategies and aims to transform itself into a chip maker by creating capital, infrastructure, and a highly skilled workforce.
Semicon India -
India has already launched its semiconductor mission, “Semicon India,” a program with an investment of Rs. 76000 crores under the production-linked incentive scheme for the growth of the semiconductor and display manufacturing industry.
The Semicon India mission requires systems to secure a reliable semiconductor supply chain for production equipment, raw materials, chemicals, and precision tools, among other essentials for sustained manufacturing.
Karnataka was the first state in the country to introduce a semiconductor policy in 2008-09. The state is home to 50 percent of India’s electronic product companies and 40 percent of electronic design firms.
Additionally, India has an outstanding semiconductor design talent pool, which comprises up to 20 percent of the world’s semiconductor design engineers. Moreover, almost all the top 25 global semiconductor design companies have design or R&D centers in India.
Singaporean group IGSS Ventures has signed a memorandum of understanding (MoU) with the Tamil Nadu state government for what its founder and chief executive Raj Kumar says will “very likely” be a wafer factory it wants to build within three years.
The Israeli group ISMC, a joint venture between Israel’s Tower Semiconductor and Abu Dhabi-based Next Orbit Ventures, has signed a letter of intent with the state of Karnataka to build a 3 billion USD semiconductor chipmaking plant.
Besides, Foxconn has teamed up with Indian group Vedanta to build a semiconductor plant, surveying sites in the western Indian states of Gujarat and Maharashtra.
