7 Ways by which India is becoming a leader in the semiconductor manufacturing process

• November 20, 2024
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India’s ambition to become a global leader in the semiconductor manufacturing process has gained significant momentum in 2024. With a blend of strategic investments, policy support, and international collaborations, the country is carving a niche in the highly competitive semiconductor industry. Here’s how India is making this ambitious vision a reality.

1. Strategic Government Policies: Laying the Foundation

India’s government has rolled out the Semicon India Program, a $10 billion initiative to develop a robust semiconductor ecosystem. This comprehensive policy offers up to 50% financial assistance for the establishment of semiconductor and display fabs, aiming to attract both domestic and global players. The program has already received 45 applications for semiconductor and display manufacturing projects​.

2. Infrastructural Advancements: Building the Right Ecosystem

Several state governments are actively contributing to infrastructure development. For instance, Gujarat is emerging as a semiconductor hub, hosting facilities by Tata Group and Micron Technology. Micron’s $2.75 billion assembly and test plant in Gujarat is expected to create thousands of jobs and contribute to India’s self-reliance in semiconductor production​

3. Skill Development: Cultivating a Knowledge-Driven Workforce

At the Semicon India 2024 event, Prime Minister Narendra Modi emphasized the importance of building a skilled workforce of 85,000 semiconductor professionals, including engineers and technicians. This initiative is critical as the semiconductor industry is projected to require over a million skilled workers in the next decade​.

4. Public-Private Partnerships: Fostering Innovation

India’s semiconductor journey is propelled by strong public-private collaborations. Noteworthy contributions include AMD’s $400 million investment in Bengaluru for advanced chip development. These partnerships leverage private innovation and public support to accelerate the industry’s growth​.

5. Technological Sovereignty: Investing in Critical Minerals

To reduce dependency on imports, India has launched the Critical Mineral Mission. This initiative secures vital minerals for semiconductor production, ensuring that supply chain disruptions do not hinder manufacturing. Additionally, customs duty exemptions and expedited mining auctions are boosting domestic capabilities​.

6. Global Collaborations: Strengthening International Ties

India’s semiconductor ambitions are supported by international partnerships, including its active participation in the QUAD Semiconductor Supply Chain Initiative with the U.S., Japan, and Australia. Such collaborations enhance India’s technical expertise and provide access to advanced technologies​.

7. Economic Impact: Paving the Way for Growth

The semiconductor sector is poised to be a key driver of India’s electronics market, which aims to grow to $500 billion by the decade’s end. This growth will not only boost the domestic economy but also position India as a significant player in the global semiconductor supply chain​​.

Conclusion

India is on the cusp of becoming a global leader in the semiconductor manufacturing process, thanks to strategic government initiatives, infrastructural advancements, skill development, and global partnerships. Here’s a recap of the seven key factors driving this transformation:

• Strategic Government Policies
• Infrastructural Advancements
• Skill Development
• Public-Private Partnerships
• Technological Sovereignty
• Global Collaborations
• Economic Impact

With these initiatives in place, India is well on its way to becoming a semiconductor powerhouse, transforming the global electronics industry landscape.

[references: India Today , The New Indian Express]