Introduction
India’s semiconductor ambitions are accelerating as Minister Ashwini Vaishnaw embarks on a pivotal visit to the United States, coinciding with projections of a $1 trillion global demand for chips by 2030.
This strategic alignment underscores India’s commitment to becoming a key player in the global semiconductor market, tapping into an industry that is set to experience explosive growth in the coming years.
The visit marks a significant step in strengthening international collaborations, attracting investments, and enhancing India’s capabilities in semiconductor manufacturing, design, and innovation.
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Key Highlights
- Semiconductor Scheme: India announced a ₹76,000 crore initiative in 2021 to promote chip manufacturing.
- Targeting Global Players: Vaishnaw is meeting leading companies like Intel, TSMC, and Micron.
- Strategic Partnerships: MoU signed with Purdue University to boost R&D and skill development.
- Global Dynamics: India’s potential as a trusted alternative in the semiconductor supply chain grows.
- Next Steps: Industry experts advocate reopening the Production Linked Incentive (PLI) scheme.
Background: India’s Semiconductor Push
India launched its semiconductor initiative in December 2021 to reduce dependence on imports and build a domestic chip ecosystem. The ₹76,000 crore scheme aimed to attract global players like Intel, TSMC, and Samsung. However, despite initial interest, no major commitments have materialized yet.
Why Semiconductors Matter
Semiconductors are the backbone of modern technology, powering everything from smartphones to advanced industrial systems. The global chip shortage during the COVID-19 pandemic highlighted the urgent need for diverse and resilient supply chains.
Minister Vaishnaw’s U.S. Agenda
Minister Vaishnaw’s visit focuses on engaging with global chip leaders in Silicon Valley. The objective is to showcase India’s potential as a reliable and cost-effective destination for semiconductor manufacturing and assembly.
Key Engagements
- Intel and TSMC: Leading chipmakers with vast market influence.
- Micron Technology: Previously explored setting up an Assembly Test Mark and Packaging (ATMP) unit in India.
- Purdue University: An MoU was signed to foster research and development, skill-building, and industry collaboration.
Building a Supportive Ecosystem
Industry veterans suggest setting up an “India Semiconductor Desk” in Silicon Valley. This initiative could bridge gaps between global semiconductor companies and India’s semiconductor mission, promoting ease of doing business and enhancing collaboration.
Strategic Benefits for India
Strengthening Supply Chains
India’s strategic location and skilled workforce make it an attractive alternative for diversifying supply chains. Amid U.S.-China tensions and increasing restrictions on China’s chip ambitions, India has emerged as a reliable partner.
Competitive Edge
With support from the U.S., India can position itself as a global semiconductor hub. The recent MoU on Semiconductor Supply Chain and Innovation Partnership between India and the U.S. reinforces this trust.
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Industry Perspectives
According to Satya Gupta, President of the VLSI Society of India, Vaishnaw’s outreach is crucial for instilling confidence among global semiconductor leaders. Gupta emphasizes the importance of global Indians in achieving India’s semiconductor goals.
Other industry experts note the significance of reopening the PLI scheme for new applications. Securing commitments from global players, even for ATMP facilities, would mark a major step forward.
Challenges Ahead
Despite the optimism, India faces stiff competition from established semiconductor hubs like Taiwan, South Korea, and China. Additionally, building a semiconductor ecosystem requires substantial investment, robust infrastructure, and long-term policy support.
Conclusion
Minister Ashwini Vaishnaw’s U.S. visit underscores India’s commitment to becoming a global semiconductor powerhouse. By forging partnerships and addressing industry concerns, India aims to position itself as a key player in the global chip market.
The success of this mission could pave the way for a thriving semiconductor ecosystem, fueling India’s digital and technological ambitions.