Prime Minister Narendra Modi on Wednesday inaugurated the three-day Semicon India 2024 and in a message to the global industry, he said that this is the right time to be in India with the government offering stable policies and ease of doing business on investments.
“India is the 8th country in the world where a grand programme related to the Global semiconductor industry is conducted. I can proudly say that this is the right time to be in India. You’re at the right place at the right time. In the 21st century of Bharat, the chips are never down,” he said.
While addressing the industry, he said that the India of today inspires confidence in the world and gives an integrated ecosystem to the industry, with the government committed to do everything to make the country a semiconductor powerhouse. “When chips are down, you can bet on India,” said PM Modi.
Elaborating on the three-dimensional power that forms the foundation of India’s semiconductor industry, PM Modi said that the first is today’s reformist government, second is the growing manufacturing base in India, and third is the aspirational market of India – a market that has tasted technology. “For all of you, this Three-D Power is a foundation of the semiconductor industry that is hard to find anywhere else,” he added.
Talking about India’s growing stature in the global chip manufacturing industry, the prime minister said that the country contributes 20 percent of the world’s talent, and it is only going up. “For India, chip’s meaning is not just technology, but a medium to address aspirations of consumers. India is a big consumer of chips,” he said.
“India’s semiconductor sector is on the brink of a revolution, with breakthrough advancements set to transform the industry,” PM Narendra Modi said.
The prime minister said that the government is working with a 360 degree approach for the semiconductor industry and the country is working towards increasing the number of chips produced in India. He said that India’s dream is to reach a stage where every device in the world has an India-made chip. “This era is the era of silicon diplomacy,” said PM Modi.
Shashwath TR, CEO of Mindgrove Technologies, said, “We are energised by the Prime Minister’s assertion that every device should have an Indian-made chip. The government of India has been supporting the semiconductor cause via the flagship PLI and DLI schemes. As a DLI-supported startup, we are very grateful for both the vision and the support. India alone consumes more than a billion chips annually and global consumption may be as high as a hundred billion, all chips included. We are looking forward to converting some part of this demand with Mindgrove Silicon.”
Further, PM Narendra Modi said, “We have recently announced a ‘Critical Minerals Mission’ to boost domestic production and overseas acquisition of critical minerals. We are working on establishing a Semiconductor Research Centre in the Indian Institute of Space Science and Technology and we are also doing partnerships with IITs and expanding International collaborations.” He also maintained that India is now the world’s number 2 producer and exporters of mobile handsets and the country is aiming to do 100 per cent electronics manufacturing in India itself – from semiconductor to finished goods.
Earlier, after meeting the prime minister ahead of the Semicon India 2024 Summit, Kurt Sievers, CEO, NXP, appreciated PM Modi’s vision of developing semiconductors in India. “I am really excited and delighted by PM Modi’s vision, consistency, and foresight into what is needed from a semiconductor industry ecosystem development perspective for India. After speaking to many political leaders in the rest of the world, I haven’t met a single one with such deep expertise in our specific industry. Very impressive,” he said.
Sanjay Mehrotra, CEO of Micron, too said that policies set up by the prime minister to incentivise semiconductor manufacturing in India are very exciting.
Reacting on the scale of the event, Kanishka Chauhan, Sr Principal Analyst, Gartner, said, “Events like this attract participants and exhibitors from around the globe. According to the details on the website, there are approximately 270 exhibitors. These vendors include not only semiconductor companies but also equipment providers, suppliers of specialized machinery for semiconductor manufacturing, and manufacturers of end-use devices. The list is diverse. Bringing all these vendors together under one roof offers numerous opportunities for networking, investment, and collaboration. It serves as a platform that fosters partnerships and collaborations while also drawing investor attention and boosting confidence in the industry. Although it is challenging to quantify the tangible outcomes of these events, they undeniably act as catalysts that benefit the industry.
“I would say that the industry is just beginning to take shape. While it is still too early to deliver a definitive verdict, and these developments do not happen overnight, progress is clearly being made in the right direction,” Kanishka Chauhan added.
In February 2024, the Government of India had approved three semiconductor facilities, which began operations in March 2024. These facilities are projected to deploy 10-15 per cent of their estimated capex of Rs 1.25 trillion by FY2025, with the first output expected in the second half of FY2026, said Aditi Nayar, Chief Economist, Head- Research & Outreach, ICRA.
India Semiconductor Mission (ISM) has approved five semiconductor units that will receive central and state government subsidies under the programme for development of semiconductors and display manufacturing ecosystem in India with a total outlay of Rs 76,000 crore.