Modi Vows to Develop India as Chip Hub as Gov't Sets $300Bn Target in Electronics Manufacturing
20:01 GMT 04.07.2022 (Updated: 10:44 GMT 19.07.2022)
© AP Photo / Prabhjot Singh GillIndian Prime Minister Narendra Modi speaks during an election rally in Jalander, in the Indian state of Punjab, Monday, Feb. 14, 2022
© AP Photo / Prabhjot Singh Gill
Last December, the Indian government announced a $10 billion incentive package to encourage global firms to set up semiconductor, display manufacturing and fabrication facilities. So far, India has received five applications for semiconductor and display fabrication facilities with a total investment of $20.5 billion.
India aims to achieve $300 billion in electronic manufacturing in the next three-four years, Prime Minister Narendra Modi said on Monday.
Modi announced a series of measures to boost the country’s digital India mission, aiming to curb dependency on imports of electronic goods.
He announced the first cohort of 30 institutions to be supported under the Chips to Startup (C2S) program to train a specialized workforce in the area of designing semiconductor chips.
“India wants to become a chip maker from a chip taker. Investment is rapidly increasing in India to increase production of semiconductors,” Modi added.
Last December, the government formulated a $10 billion incentive plan following COVID-induced supply disruption, which exposed the vulnerability of India’s manufacturing sector. India imports 100 percent of its semiconductors.
Last month, India’s Ministry of Electronics and Manufacturing said that Belgium-based IMEC, a renowned intermediate research organization in the world of semiconductor fabs, has agreed to provide technical support to set up the semiconductor ecosystem in the country.
On 23 June, Foxconn chairman Young Liu visited New Delhi, discussing its planned investment of $13.6 billion with Vedanta Group for chip manufacturing in India.
Vedanta expects $3-3.5 billion in total turnover from the joint venture, including exports from one-third of their chip manufacturing in the country.
The Indian government expects that at least 50-60 design companies will start developing products in the next 2-3 years.