The country’s first semiconductor fabrication development project will be declared in the next few weeks, communications and IT minister Ashwini Vaishnaw said on Tuesday.
The statement from the Union minister assumes significance as the government is currently assessing the proposals for chip manufacturing in the country. The International Semiconductor Consortium (ISMC), IGSS Ventures and a Vedanta-Foxconn joint venture have submitted their investment proposals worth $13.6 billion seeking the government’s support of $5.6 billion under the semiconductor production-linked incentive (PLI) scheme.
“We believe that with the work the country is doing today…the way things are moving (at) the state as well as the Centre levels, we should see a vibrant semiconductor industry in the country in three to four years,” Vaishnaw said at the CII Partnership Summit.
Local manufacturing of semiconductors is key with regard to supply side constraints faced by the industry, and once manufacturing starts in the country, it will reduce the dependence on imports.
“It’s (semiconductor) a new industry for India. It’s not something which can happen overnight. It requires persistent efforts, tremendous focus and huge engagement with the stakeholders,” Vaishnaw said, adding that the government has practically touched base with every possible stakeholder in the industry, including gas manufacturers, chemical manufacturers and photo lithography equipment suppliers.
Minister of state (MoS) for electronics and IT Rajeev Chandrasekhar had told FE last month that the government will soon approve two proposals, after which it will take around a year or two for the firms to come up with their projects.
In order to resolve the supply side issues with regard to semiconductors and electronics, Vaishnaw said the government has taken three major initiatives — getting the right ecosystem, a clearly laid-out policy framework for investors, and focus on creating a central industry.
India’s electronic manufacturing industry is worth $87 billion. “India is already No. 2 in mobile phone manufacturing and No. 3 in exports. This year, the mobile phone exports will touch $9.5-10 billion,” Vaishnaw said, adding that 99% of smartphones sold in the country are locally manufactured.
Besides semiconductors and electronics, Vaishnaw also mentioned the affordability of India’s telecom services and 4G-5G stack as well as the government’s willingness to offer the stack to other countries.
“We all know the telecom sector is the entry into the digital world. That’s where the primary force comes in to make sure that the telecom sector is stable, healthy and competitive. And you can create a situation where data will be affordable,” Vaishnaw said.
The minister, who also handles the railway portfolio, also said the bullet train project is expected to get ready by August 2026, whereas the hyperloop technology may take 7-8 years. In the last one-and-a-half year, 150 pillars of bullet train have been built.