India Revives Chip Ambition with Six New Semiconductor Units

Indian Prime Minister Narendra Modi has announced a renewed focus on semiconductor manufacturing, stating that a "Made in India" chip will be available by the end of the year. This comes after decades of missed opportunities in the sector, with India's first semiconductor unit, the Semi-Conductor Laboratory, struggling to stay afloat due to a mysterious fire in 1989. The Union Cabinet has approved four new semiconductor projects with total investments of around Rs 4,600 crore.

Indian Prime Minister Narendra Modi has announced a renewed focus on semiconductor manufacturing, stating that a "Made in India" chip will be available by the end of the year. This comes after decades of missed opportunities in the sector, with India's first semiconductor unit, the Semi-Conductor Laboratory, struggling to stay afloat due to a mysterious fire in 1989. The Union Cabinet has approved four new semiconductor projects with total investments of around Rs 4,600 crore [1].

In his 79th Independence Day address, Prime Minister Modi highlighted the significance of innovation and technology, particularly in semiconductors, artificial intelligence, and clean energy. He emphasized that India must take the lead in these areas to achieve technological self-reliance. "Whichever country embraced technology, they reached great heights," Modi said, noting that India has lost decades due to delays in semiconductor manufacturing. However, he added that the country is now moving forward in "mission mode" with six semiconductor units planned and four already approved [1].

The Semiconductor Mission aims to reduce India's reliance on imports and establish the country as a key hub in global chip manufacturing. Modi linked this effort to the vision of Viksit Bharat by 2047, stressing that self-sufficiency in semiconductors will strengthen industries such as defense and digital infrastructure. Earlier this week, the Economic Times reported that worth Rs 4,594 crore. With this, the number of approved chip manufacturing facilities in the country has reached ten, bringing the total projected investments to around Rs 1.6 lakh crore across six states [1].

This announcement is part of a broader push for self-reliance, or "Atmanirbhar Bharat," as Modi called it. In his Independence Day speech, the PM emphasized the need for Indians to embrace the spirit of swadeshi and the government's resolve to achieve self-reliance in energy, defense, and technology. He announced a Rs 1 trillion jobs scheme, the Pradhan Mantri Viksit Bharat Rozgar Yojana, which will pay a sum of Rs 15,000 to any youth who gets their first job in the private sector [2].

The government's efforts to boost semiconductor manufacturing coincide with a global trend of increasing investment in the sector. As the world becomes more digitized, the demand for semiconductors is expected to grow significantly. By 2025, the global semiconductor market is projected to reach $800 billion, up from $500 billion in 2020 [3]. India's push to become a major player in this market could potentially lead to significant economic benefits, including job creation, increased exports, and reduced dependence on imports.

However, there are challenges to overcome. The semiconductor industry is highly capital-intensive and requires a skilled workforce. India will need to invest in education and training to develop the necessary talent pool. Additionally, the industry is highly competitive, and India will need to ensure that its products are of high quality and competitive in terms of price.

Despite these challenges, India's push to become a major player in semiconductor manufacturing is a significant step towards achieving technological self-reliance. With the support of the government and the private sector, India has the potential to become a global leader in this critical technology sector.

References:
[1] https://m.economictimes.com/tech/technology/by-year-end-made-in-india-semiconductor-chips-will-hit-the-market-pm-narendra-modi/articleshow/123317803.cms
[2] https://www.business-standard.com/economy/news/pm-modi-independence-day-speech-swadeshi-atmanirbhar-bharat-125081500570_1.html