Indias Role In Worlds Semiconductor Industry

Indias Semiconductor Economy  – semiconductors better known as chips. It’s the new oil. Chips run your life, they power all your gadgets and as the world becomes more digital chips have become Central to our existence which means they’re also Central to our economies.

Chips have become a strategic resource. Countries want to secure supplies and boost production. Governments are investing billions and trying to win what’s become the global chip race of course India doesn’t want to be left behind.

Indias Semiconductor Economy: Privates Firms Join Investment

 

 

Today we’ll discuss,  what New Delhi is doing to get more chips. It has made a big announcement. India has approved three projects total cost some $15 billion. The idea is to boost chip production.

The first project is a semiconductor fabrication plant. It will be India’s first set up by TATA Group and Taiwan’s power chip based in the western state of Gujarat in the DOA region. Estimated cost some 91,000 CR rupees that’s $10 billion.

Once ready it’s expected to produce 3 billion chips every year. 3 billion now these won’t be AI chips. They’ll be more basic, but they should be able to power a lot of things like high power computers, electric vehicles, and electronics. The project should kick off in the next 100 days that’s number one.

The second one is a chip Assembly Plant worth $3.2 billion again to be set up by the TATA Group but this one will be in the state of Assam. It will be India’s third semiconductor unit. Once ready it should be able to produce up to 48 million chips every day. This plant will mainly focus to export meets.

The third is a chip packaging facility. It will be set up by CG power in partnership with Japan’s Renaissance Electronics and Thailand Stars micro Electronics. The plant will be located in Gujarat sanand.

It will make specialised chips to be used for sectors like defence and space. The government is investing around $916 million for this so three big projects. Billion dollar Investments and international partners.

Connect the dots and you’ll see the big picture India wants to boost its semiconductor Market. It wants to become a big Global player like Taiwan and China. These are not the First Investments That India has made last year New Delhi announced a $2.75 billion Micron facility this was during prime minister Modi’s visit to the US.

It is currently under construction. The plant is supposed to be ready by the end of this year. Meanwhile Taiwan’s Fox Conn is planning a chip making facility. America’s AMD or Advanced Micro Devices is also investing some $400 million in India. It is setting up its largest global Design Center in India.

Indias Semiconductor Economy: Semiconductor Road Ahead For India

 

So India has a lot of things going for it but will that be enough. The semiconductor Market is highly concentrated. It has few players and fewer stakeholders more and more countries now want a slice of this pie. They want to boost their domestic Industries and to protect themselves from impending chip Wars.

It’s a tough ask building a chip industry involves two things billions of dollars in Investments. Specialised labour that’s what you need a lot of money and specialised labour.

While India is making Investments and attracting new players and nurturing Talent. It’s a long road ahead setting up a robust chip industry is a long-term process. It could take decades take the semiconductor fabrication plant.

For example the one, the first project that we talked about work will start in the next few months but it will take at least 5 years for the first chip to be produced.

Here secondly India is focusing on chips, But not AI chips but that that is the future if you want to lead this game you need to Ace artificial intelligence chips. While these projects are very important . India will have to sustain the momentum to become a credible player in this game.