India Poised to Become a Global Semiconductor Powerhouse: PM Modi

Prime Minister Narendra Modi reiterated this vision on Tuesday Sep 10 during the Semiconductor Executives’ Roundtable, held at his residence in New Delhi. The event took place on the eve of the highly anticipated ‘Semicon India 2024,’ a three-day event set to kick off in Greater Noida from September 11 to 13.

Chairing the meeting, PM Modi emphasized the critical role of semiconductors in the modern era. “Semiconductors are the foundation of the Digital Age, and soon, they will become the bedrock of even our most basic necessities,” he said.

He also noted that India’s focus is on developing products that are globally competitive, with a robust emphasis on building hi-tech infrastructure. Modi expressed confidence in India’s ability to emerge as a reliable partner in a diversified semiconductor supply chain, reinforcing the government’s commitment to fostering a stable and predictable policy environment for the industry.

India’s ambition to rise as a global semiconductor leader is gaining momentum, with the government pushing forward initiatives like ‘Make in India’ and ‘Make for the World.’ During the roundtable, PM Modi conveyed to industry leaders that the government would continue to support and nurture the semiconductor ecosystem, offering strong incentives and backing infrastructure development. Attendees of the roundtable included top executives from globally renowned semiconductor companies such as SEMI, Micron, NXP, PSMC, IMEC, Renesas, TEPL, Tokyo Electron Ltd, Tower, Synopsys, Cadence, Rapidus, Jacobs, JSR, Infineon, Advantest, Teradyne, Applied Materials, Lam Research, Merck, CG Power, and Kaynes Technology.

Currently, India has five semiconductor manufacturing proposals on the table, with a cumulative investment nearing Rs 1.52 lakh crore. This is part of the government’s broader efforts to strengthen its position in the semiconductor value chain, from manufacturing to design and research.

India is aiming to create an ecosystem conducive to semiconductor manufacturing, which is crucial in addressing the global chip shortage and ensuring supply chain resilience. The Prime Minister assured industry leaders that the government would maintain a predictable regulatory framework, which will encourage further investment in semiconductor manufacturing and research in India.

CEOs and representatives from the global semiconductor industry praised India’s proactive role in supporting the sector….Several industry leaders highlighted the unprecedented nature of the roundtable, with one executive stating, “What has transpired today is extraordinary. For the first time, leaders from across the entire semiconductor ecosystem have gathered under one roof to discuss India’s potential.”

India’s growing importance in the semiconductor industry can be attributed to several factors, including its large and skilled workforce, favourable policy environment, and the increasing demand for chips across sectors such as automotive, consumer electronics, and telecommunications. The government’s Production Linked Incentive (PLI) scheme, coupled with tax incentives for semiconductor manufacturing, has made India an attractive destination for global chipmakers.Furthermore, India’s focus on developing indigenous semiconductor technology aligns with the global push for supply chain diversification. With the US-China trade tensions and the increasing demand for chips, countries around the world are looking to India as a key partner in building a more resilient global semiconductor supply chain.