"India Set to Join Top Seven Semiconductor Manufacturers by 2030, Says Vaishnaw"

Speaking at the National Stock Exchange in Mumbai, Ashwini Vaishnaw, Minister of Communications, IT, and Railways, announced India’s ambitious goal to become one of the top seven semiconductor manufacturers worldwide within the next five to six years. The declaration was made during the Viksit Bharat Ambassador series event.

“The semiconductor industry is a new industry in the country. But within a short period of time, by 2029 or 2030, we will be amongst the top seven semiconductor manufacturing nations in the world,” Vaishnaw stated.

As part of its drive to establish a significant foothold in the global semiconductor industry, India has extended fiscal support to four projects under its semiconductor subsidy scheme. Notably, Micron’s ATMP facility in Gujarat and two projects by Tata Electronics have received subsidy approvals. Additionally, a proposal by India-based CG Power in partnership with Japan’s Renesas has been approved. Upcoming projects, including an anticipated semiconductor fab by Israel’s Tower Semiconductor and a joint venture between Foxconn and HCL Tech to establish a semiconductor OSAT, are expected to gain approval following the upcoming elections.

Vaishnaw emphasized the broad impact of these developments, stating, “Global brands across the world will soon be deploying made-in-India chips in their cars, smartphone devices, and other products.”

He further highlighted that manufacturing would be a cornerstone of Prime Minister Narendra Modi’s “Viksit Bharat” vision, aimed at creating high-quality jobs for young Indians through the production-linked incentive scheme.

However, a recent report by BusinessLine indicates that despite the subsidy scheme's implementation, which notably excludes Chinese smartphone manufacturers, three-quarters of Indian smartphone buyers still prefer Chinese devices, a trend unchanged over the past five years.

Addressing this concern, Vaishnaw responded, “In April 2024, Apple exported Rs 10,000 crore worth of iPhones from this country. It shows that we have to move away from an import substitution mindset to a mindset of export-led growth. The entire world is our market. We need to become a manufacturer who is trusted, reliable, who respects IPR, who believes in training, who believes in technology upgradation, and then supply to the entire world.”

The minister’s remarks underscore India’s strategic shift towards becoming a global manufacturing hub, fostering technological advancement, and bolstering economic growth.

HBL