Union Telecom and IT Minister Aswhini Vaishnaw has announced that India is set to witness the establishment of its maiden electronic chip manufacturing plant within the coming year.
India's first semiconductor will be set up in the Sanand district of India's Gujarat, and the Indian government has announced a $10 billion incentive for manufacturers to set up a semiconductor manufacturing ecosystem in the country.
India's first semiconductor plant will be set up in the Sanand district of Gujarat. In addition to that, the Indian government has recently unveiled a $10 billion incentive package for manufacturers, aimed at fostering the establishment of a robust semiconductor manufacturing ecosystem within the country.
"We are focusing on a niche area where we can be a global leader. Telecom and EVs (electric vehicles) have emerged as a big segment for semiconductors. If we focus on developing and manufacturing chips for these segments, we can become global leaders in these two segments," Vaishnaw told Indian news agency PTI on Sunday.
Micron, the US-based memory chip giant, plans to invest $825 million (equivalent to ₹67.6 billion), with the government also providing remaining funding in two phases. In September, Micron began construction of a semiconductor assembly plant.
The state government of Gujarat has allocated 93 acres of land in the Sanand GIDC Estate to Micron.
As per preliminary reports, the first phase of this facility is expected to start producing packaged chips by December 2024.
The second phase is planned for the second half of the decade. Semiconductor chip manufacturing units are essential for every developing and developed nation as they are used in automobiles, mobile phones and railways for defence.
In short, semiconductor chips are at the heart of today's products. By 2030, the global semiconductor industry, currently valued at $650 billion (INR 53 trillion), is projected to surge to an astounding $1 trillion (INR 82 trillion).
The India Semiconductor Mission, launched by the central government of India in 2021, is set to create a thriving semiconductor and display ecosystem. The aim is to position the country as a global centre for electronics manufacturing and design.