India’s Leap into the Future: The Ambitious Semiconductor Plan

India’s Leap into the Future: The Ambitious Semiconductor Plan

In the realm of technology and innovation, India is making strides with an ambitious plan to become a global semiconductor powerhouse1. This journey, while challenging, is a testament to India’s commitment to technological advancement and self-reliance.

The Semiconductor Landscape

Semiconductors, the heart of modern electronics, are a critical component in various sectors such as defence, automobiles, and telecommunications2. However, the manufacturing of these tiny yet powerful chips is a complex and costly process1. Despite these challenges, India is determined to carve out its niche in this sector.

India’s Ambitious Plan

The Indian government has approved a staggering US$ 10 billion incentive plan to attract semiconductor companies to establish their plants in the country3. This move is part of a larger scheme, the ‘Development of Semiconductors and Display Manufacturing Ecosystem’, which has an allocated budget of up to $15.2 billion.

Key Investments and Progress

The Union Cabinet, chaired by Prime Minister Narendra Modi, recently approved the establishment of three more semiconductor units5. These units, set to start construction within the next 100 days, are a significant leap for the India Semiconductor Mission.

Tata Electronics Private Limited (TEPL) will set up a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, in Dholera, Gujarat, with an investment of Rs.91,000 crore.

Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will set up a semiconductor unit in Morigaon, Assam, with an investment of Rs.27,000 crore.

CG Power, in partnership with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, will set up a semiconductor unit in Sanand, Gujarat, with an investment of Rs.7,600 crore

Latest Developments

Zoho, the Indian SaaS giant, is planning a significant move into the semiconductor industry with a planned investment of $700 million into chipmaking4. This investment is expected to boost the semiconductor manufacturing industry in Tamil Nadu

Government Schemes and Initiatives

The Indian government has launched the 'Modified Programme for Semiconductors and Display Fab Ecosystem’5. This programme extends fiscal support of up to 50% of the project cost on a pari-passu basis for all technology nodes under the Scheme for Setting up of Semiconductor Fabs in India5. The programme aims to provide attractive incentive support to companies/consortia engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors/Silicon Photonics/Sensors Fabs/Discrete Semiconductor Fabs, and Semiconductor Packaging.

The Road Ahead

While the journey is challenging, the potential rewards are immense. With these initiatives, India aims to reduce its dependence on imported chips and establish itself as one of the top five semiconductor chip producers globally by 2029.

India’s ambitious semiconductor plan is a testament to the country’s commitment to technological advancement and self-reliance. As the world watches, India is poised to make a significant impact on the global semiconductor landscape.