The government aims to make electronics production completely domestic, and ensure a resilient supply chain, says Modi
Prime Minister Narendra Modi on Wednesday trumpeted India’s potential in semiconductor chips, saying it is the “right time” to be in the country as it aims to ramp up its electronics industry to $500 billion by the end of the decade.
“When the chips are down, you can bet on India,” he said during the ‘Semicon India’ event in Greater Noida. He added, “This is the right time to be in India. You are at the right place at the right time.”
“India’s electronics sector is worth more than $150 billion today, and our target is now even bigger. By the end of this decade, we want to take our electronics sector to $500 billion in production. It will create around 6 million jobs for the country’s youth,” he said.
Modi said the government aims to create an ecosystem where semiconductor chips as well as its finished goods are produced in the country itself. India contributes 20 per cent to the world’s semiconductor design and will expand its share, said the PM.
“We are creating a workforce of 85,000 in the semiconductor domain. India’s focus is to make its students, its workforce ready for the industry,” he added.
Also, helping it were initiatives such a Rs 1-trillion research and development (R&D) fund and a ‘360-degree approach’ to attract investments and develop supply chains, said the PM.
He said, “For India, chips are a way to fulfil the aspirations of the people. We have built the world’s best digital public infra on this chip, which is helping us to ensure last-mile connectivity.”
“We have taken a lot of steps to increase semiconductor manufacturing, including 50 per cent support from the Centre and also from the states. It’s because of India’s policies. Around Rs 1.5 trillion worth of projects have been approved in India and many more are in the pipeline,” he added.
The government aims to make electronics production completely domestic, and ensure a resilient supply chain, said Modi.
Executives from major semiconductor companies also made a few announcements during their inaugural speeches.
While NXP announced an investment of $1 billion in India-based R&D in a couple of years, Renesas also revealed plans to more than double headcount in the country by next year.
Top semiconductor CEOs laud India
Meanwhile, CEO of key electronics industry stakeholder SEMI, Ajit Manocha, applauded the reception received at SEMICON India 2024 and highlighted the event as ‘unprecedented’ and ‘exponential’. He mentioned the unprecedented scale of the event and the coming together of more than 100 CEOs and CXOs from all over the world representing the total electronic supply chain for semiconductors.
SEMI serves the needs of the industry and the manufacturing supply chains for the microelectronic, display and photovoltaic industries.
Manocha expressed optimism about the commitments of the industry to becoming India’s trusted partner in the journey to creating a semiconductor hub for the benefit of the country, world, industry and humanity.
Referring to the exponential model of growth in India, Manocha said that the semiconductor industry is foundational to every industry in the world, more importantly for humanity.
The three-day Semicon India 2024 conference that commenced Wednesday will showcase India’s semiconductor strategy and policy which envisions making India a global hub for semiconductors.
President and CEO of Tata Electronics, Randhir Thakur thanked the Prime Minister for making this historic gathering possible and lauded his vision to bring the semiconductor industry to the Indian shores.
He recalled the Prime Minister laying the foundation stone of India’s first commercial fab in Dholera and first Indigenous OSAT factory in Jagiroad, Assam in March this year and said that both the projects received approval from the government in record time.
Thakur said that the efforts of the government have brought all these ecosystems under one roof here at SEMICON 2024. He credited the Prime Minister’s global outreach and emphasis on India’s semiconductor mission for establishing key partnerships with ecosystem players to further growth.
He assured the Prime Minister that the semiconductor industry will become the bedrock of the vision of Viksit Bharat 2047 and it will have a multiplier effect on job creation.
CEO of NXP Semiconductors, Kurt Sievers expressed his excitement and humbleness to being a part of SEMICON 2024 and said that the event marks a transformational journey for India.
Highlighting the three attributes for success namely ambition, trust, and collaboration, he said that an event like today’s marks the beginning of collaboration.
He informed about doubling the R&D efforts by NXP above a billion dollars.
CEO of Renesas, Hidetoshi Shibata, congratulated the Prime Minister for such a successful and commemorative event at SEMICON India 2024. He said that it has been a privilege to partner with such a renowned institution and establish one of India’s first assembly and test facilities in Gujarat. He informed that the construction of a pilot line is already underway and also spoke about expanding activities and operational presence in Bangalore, Hyderabad, and Noida.
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