The semiconductor shortages and the plight of the hard-hit industries have aroused a need not just for the Indian subcontinent but globally as well, the need to not rely on a handful of American, Japanese, South Korean, or Taiwanese Semiconductor Manufacturers.
From auto to defence, every sector has dealt with the crisis, and the industries, as well as the government, do realise the pressing priority. In the quest to become Atmanirbhar and an age-long desire of being a major manufacturer of semiconductors, India is finally heading towards the same.
The government of India initiated a scheme back in December 2021 with the announcement of the Semicon India Program. The aim of the programme for the development of semiconductors and display manufacturing ecosystems in India. The idea seeks to attract proposals from various semiconductor manufacturers and set up fabrication plants, develop design capabilities going forward and make India a global hub.
Tata Motors, now a leading electric carmaker as well recently partnered with Renesas Electronics, the Japanese chip manufacturer to co-develop semiconductors.
Another big development has been Prime Minister Narendra Modi’s meeting with Foxconn’s Chairman, Young Liu. India extending its hand to the expansion of electronics manufacturing in the country is a positive approach toward achieving carbon neutrality and the inclination toward EV adoption.
In line with the same, in February this year, a joint venture between two majors – Foxconn and Vedanta took place. With a majority of 60 per cent equity, Vedanta group will be investing hugely in the manufacturing of semiconductor chips in India in the next few years.
With instructions from PMO (Prime Minister’s Office), the IT Ministry is also aligned with the same mission of self-sufficiency. The central government has assigned a budget of Rs 76,000 crore for the semiconductor missions, inviting industry veterans, corporate houses, and state governments. Besides the semiconductor packaging and design, there is also a provision of incentives for the silicon semiconductor fabs, display fabs, compound semiconductors, silicon photonics, and sensors fabs.
Recently, the Basavaraj Bommai-led Karnataka government signed an MoU with Israel-based ISMS Analog worth $3 billion (Rs 23,661 crore) that marked the beginning of the vision. The fab unit is expected to come up in the next seven years.
The government is leaving no stone unturned to attract investments and further plans are in pipeline to bring in over $20 billion (Rs 157,740 crore) capital for setting up more such plants.
While the semiconductor and components shortage still continues to be a challenge and roping in funds and setting up infrastructure has a long way to go for the country. The voyage, however, has begun!
Also read: Chips & component shortages – a challenge to the connected world! Experts anticipate some improvement, but not until the next year.