This marks a crucial step towards reducing dependence on imports and strengthening India’s position in the global semiconductor industry.
- India's semiconductor manufacturing industry is still in its early stages & heavily relies on other countries like Taiwan, China etc. for semiconductor chips.
- Developing an indigenous chip will enhance national security, reduce trade deficits, & boost domestic electronics industry.
India’s Semiconductor Industry
- Indian Semiconductor Market: Estimated approximately $38 billion in 2023, with projections indicating growth to $109 billion by 2030.
- Potential: India's semiconductor consumption market is expected to grow at a strong compound annual growth rate (CAGR) of 13% through to 2030.
Challenges
- Capital-intensive Sector: E.g., Setting up a semiconductor fab requires over $10 billion.
- Lack of Skilled Workforce: India needs experts in semiconductor design, fabrication, and testing.
- Dependence on Raw Material Imports: Critical raw materials like silicon wafers, semiconductor chips etc. are imported.
Initiatives Undertaken
- Semicon India Program: To promote domestic semiconductor industry through incentives and strategic partnerships.
- India Semiconductor Mission:To build a vibrant semiconductor & display ecosystem to enable India’s emergence as a global hub for electronics manufacturing and design.
- Partnerships with Global Firms: Collaborations with companies like Micron, Foxconn to establish manufacturing units in India.
