Our Bureau
New Delhi
India is moving towards a future where the country is looking to reduce its dependence on other countries. The country is taking strides to become a global chip major but it is certain that they are going to face heavy competition from markets around the world who are in a race to make the most advanced chips.
In 2022, when the United States restricted exports of its advanced AI chips to China, India had a great opening for them to secure chips and a chance to capitalise on the situation. They saw an opportunity to capture a bigger share of the global electronics market which was now drifting away from China.
Despite being one of the largest consumers of electronics in the world, India had no local chip industry and had little to no influence in the global supply chain. However, the “Semiconductor Mission” that the central government has introduced is now working to change that. It will focus on building a new supply chain in the country that will design, fabricate, test and package chips in the country itself.
As of now, India, under their “Semiconductor Mission”, has approved 10 semiconductor projects with a total investment of 1.6 trillion rupees ($18.2 billion). These projects include two semiconductor fabrication plants, and multiple testing and packing factories. However, as per experts the progress in the industry has not been consistent and have highlighted that neither the investments nor talent pool is enough to make the mission a success.
“India needs more than a few fabs or ATP facilities (i.e., more than a few “shiny objects.”) It needs a dynamic and deep and long-term ecosystem,” said Stephen Ezell, vice president for global innovation policy at the Information Technology and Innovation Foundation, a science and technology policy think tank.
