India’s Ambitious Goal to Become a Top Semiconductor Producer
India is setting its sights on becoming one of the top five semiconductor producers in the world within the next five years. Ashwini Vaishnaw, the minister of electronics and information technology, railways, and communications, expressed this ambitious goal during an interview with CNBC’s Street Signs Asia. According to Vaishnaw, the semiconductor industry is complex, with intricate global value chains and supply chains. However, India believes it has the potential to break into the top ranks of semiconductor manufacturing.
Currently, Taiwan dominates the global semiconductor foundry market with a 46% share, followed by China, South Korea, the U.S., and Japan. As tensions between the U.S. and China persist, more companies are looking to diversify their supply chains and reduce reliance on China. India aims to position itself as a trusted value chain partner for electronic device manufacturers, industrial and defense electronics, and power electronics. Vaishnaw referred to this concept as “trust shoring,” emphasizing the global trust in India’s capabilities.
Recent developments indicate a growing interest in India’s semiconductor industry. U.S. chip giant Qualcomm opened a new design center in Chennai, focusing on wireless technology design and creating 1,600 jobs in the country. Prime Minister Narendra Modi inaugurated three semiconductor plants, including a joint venture between Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Corp. The goal is to produce India’s first semiconductor chip by 2026, further solidifying India’s presence in global semiconductor value chains.
In addition, Apple supplier Foxconn announced plans to invest over $1.5 billion in India, highlighting the country’s attractiveness as a destination for semiconductor investments. Vaishnaw also confirmed reports of the government reviewing semiconductor proposals totaling $21 billion, indicating a growing interest from global companies in India’s semiconductor sector.
Despite investors expressing concerns about India’s current position in semiconductor manufacturing, Vaishnaw remains optimistic about the country’s potential. He believes that India’s large talent pool and focus on ramping up manufacturing capabilities will drive significant growth in the semiconductor sector. With the global semiconductor industry projected to reach a trillion dollars within the next seven years, India aims to leverage its talent and resources to become a key player in the market.
In my opinion, India’s ambitious goal to become a top semiconductor producer is commendable and reflects the country’s commitment to technological advancement. By investing in semiconductor manufacturing and attracting global companies to set up operations in India, the country is positioning itself as a competitive player in the global semiconductor market. The government’s initiatives to support the growth of the semiconductor industry will not only boost India’s economy but also enhance its influence in the global technology landscape. It will be interesting to see how India progresses towards achieving its goal of becoming a top semiconductor producer in the coming years.