Semiconductor: India To Be At Par With Its Global Peers

Union minister Ashwini Vaishnaw said that India's chipmaking capabilities are set to be at par with US, China, and other major producers by 2032. The India Semiconductor Mission with $10 billion outlay boosts local manufacturing, design, and talent.

"In the case of semiconductors, by 2031-2032, we will be equivalent to what many of these countries are at today. Then it will be a level playing field," the minister said, speaking at the Bloomberg's New Economy Forum in Singapore.

India's semiconductor journey has been gaining strong momentum under the Semicon India Programme. So far, the government of India has approved 10 projects in areas of strategic importance, including high-volume fabrication units (Fabs), 3D heterogeneous packaging, compound semiconductors (including Silicon Carbide – SiC), and outsourced semiconductor assembly and test (OSATs).

"Our aim is to make India one of the top five semiconductor nations by 2032," Vaishnaw said on the first day of Semicon India.

Electronics and IT Secretary S. Krishnan confirmed that the central government has already committed nearly INR 629 billion (US$7.17 billion)—about 97 percent of the INR 650 billion (US$7.41 billion) earmarked as incentives for semiconductor production under the India Semiconductor Mission. The remaining funds can accommodate only a few smaller projects.The allocated budget has been set aside for chip production, INR 100 billion (US$1.14 billion) for modernizing the Semiconductor Laboratory in Mohali, Punjab, and INR 10 billion (US$114 million) for the design-linked incentive scheme.

Indian conglomerates and semiconductor startups need to work together to leverage the enablers as the world has already undergone supply chain shocks exposing the underlying risks in the semiconductor global value chain. The increased foreign investment will likely stimulate the growth of local semiconductor manufacturing and R&D capabilities. This means more investments in infrastructure, technology transfer and skill development. As a result, Indian companies and startups in the semiconductor space may experience accelerated growth and technological advancement.

India is far behind chip industry leaders Taiwan and South Korea and nations such as the US, China and Japan, which are spending hundreds of billions of dollars to build domestic chipmaking capacities. Three of India's chip facilities will start commercial production early next year, Vaishnaw said.

India's Union Cabinet approved four additional semiconductor manufacturing projects under ISM, in the past few months: SiCSem Private Limited, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc., and Advanced System in Package (ASIP) Technologies. India's chip market is booming, set to hit $100–110 billion by 2030.