- India aims to further its success in electronics manufacturing, targeting $300 billion by 2026-27
- The government has received four proposals for semiconductor manufacturing plants and 13 for chip assembly, testing, monitoring, and packaging units
The Indian government has recently announced its plan to set up two major semiconductor fabrication plants and multiple chip assembly and packaging units in India.
Minister of Electronics and IT Rajeev Chandrasekhar shared that one of the projects involves an $8 billion proposal from Israel-based Tower Semiconductors, with the other coming from Tata Group.
The minister has highlighted the specialities of these fabrication units. It will utilise 65, 40, and 28-nanometer technologies alongside various packaging proposals under evaluation.
The government has received four proposals for semiconductor manufacturing plants and 13 for chip assembly, testing, monitoring, and packaging units. This announcement is in addition to establishing a chip assembly plant by US-based Micron in Gujarat, amounting to Rs 22,516 crore.
Looking back on India’s semiconductor journey, Chandrasekhar highlighted the progress made since 2014, particularly after the launch of the semiconductor programme in January 2020. He emphasised the need to catch up on 75 years of missed opportunities and noted significant advancements in semiconductor design, startups, research, talent development, packaging, and fabrication.
Government data shows a substantial increase in domestic electronics manufacturing over the past decade, with the sector expected to grow further to Rs 23,95,195 crore by 2026. Chandrasekhar also called for reducing import duties on electronic components to enable export-led manufacturing, drawing inspiration from Andrew Grove’s philosophy of “Only the Paranoid Survive.”
India’s role in the global electronics supply chain is evolving, with a shift away from China towards alternative hubs. Chandrasekhar highlighted India’s contribution to this shift and emphasised the country’s ambition to become a global leader in electronics manufacturing, citing achievements in mobile handset production and export.
With 99.20 per cent of mobile handsets now manufactured domestically, India aims to further its success in electronics manufacturing, targeting $300 billion by 2026-27.
