India's Semiconductor Ambitions: A New Manufacturing Hub

The geopolitical situation has prompted countries to collaborate with India to make it a major semiconductor manufacturing hub. Pilot facilities by Micron and Tata Electronics have initiated production, with main plants in Gujarat set to operate by late 2025. The government has approved significant investments to bolster the semiconductor ecosystem, including projects worth Rs 1.5 lakh crore.

Due to the prevailing geopolitical situation, like-minded countries are collaborating with India to establish it as a major semiconductor manufacturing hub, according to a top Electronics and IT ministry official.

In an interview with PTI, Ministry of Electronics and IT Secretary S Krishnan revealed that pilot facilities of US-based Micron and Tata Electronics have already rolled out chips. Their main plants in Gujarat are slated to begin production by late 2025. 'Globally, and thanks to geopolitical circumstances, there is an increasing realization that semiconductors are a very important and strategic commodity. We need substantial resilience in semiconductor production,' said Krishnan. The scarcity of chips during the pandemic highlighted the need for greater sourcing diversification, affecting industries like automotive and medical devices.

Krishnan emphasized that many countries have partnered with India to develop its semiconductor manufacturing capabilities, building resilience in the global value chain. The government has greenlit projects amounting to Rs 1.5 lakh crore, excluding Adani Group-Tower Semiconductor's Rs 83,000 crore investment in a new chip plant in Maharashtra. 'The government has cleared five projects under the India Semiconductor Mission. Micron in Gujarat and Tata Electronics in Karnataka have completed their pilot facilities, with main plants expected to roll out chips by late 2025,' Krishnan said.

Growing interest from semiconductor ecosystem companies is evident, with a fourfold increase in participation for the upcoming Semicon India event. 'India is now joining the ranks of countries hosting Semicon events, with significant registrations and attendance,' Krishnan added. According to Semi, the event will feature over 650 booths and more than 250 semiconductor firms. Krishnan highlighted India's potential as a major global semiconductor chip manufacturer, attracting numerous companies and nations.

(With inputs from agencies.)