Indian semiconductors : Viksit Bharat@2047

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 The Rise of the Semiconductor Industry in India



India’s semiconductor industry is emerging as a key player in the global tech ecosystem, driven by a combination of policy support, market demand, and strategic investments. As the world grapples with chip shortages and the importance of localizing technology supply chains, India is working to build its semiconductor capabilities, aiming to become a manufacturing hub for the sector.



Government Initiatives and Policies


The Indian government has taken several steps to foster a robust semiconductor industry. One of the main initiatives is the Semicon India Program, a $10 billion investment scheme announced in 2021 aimed at promoting the manufacturing and design of semiconductors within the country. This includes incentives for companies involved in semiconductor and display fabrication, assembly, and testing. Additionally, the Production Linked Incentive (PLI) Scheme offers financial benefits to companies that set up or expand manufacturing units in India .



(Expected Indian Market in Billions)


Market Demand and Strategic Partnerships


India’s demand for semiconductors is surging, especially due to its rapidly expanding electronics, automotive, and telecom sectors. As 5G technology is deployed and the electric vehicle market grows, demand for chips will continue to rise. Indian companies are forming strategic partnerships with global players to bring expertise and technology into the country. For instance, Tata Group has announced plans to enter the semiconductor manufacturing space, which could catalyze the growth of a domestic ecosystem .


(Roadmap for creating ecosystem un India)



Challenges and Opportunities


While the prospects are promising, there are challenges. Establishing semiconductor fabrication facilities is capital-intensive, and India currently lacks the infrastructure and skilled workforce compared to established players like Taiwan and South Korea. Addressing these challenges will require long-term investment in infrastructure, training, and research and development.


However, India’s entry into semiconductor manufacturing also brings unique opportunities. Given the geopolitical shift away from reliance on single-source supply chains, India is positioning itself as an alternative for companies looking to diversify. If successful, the semiconductor industry could add billions to India’s GDP, create high-quality jobs, and reduce reliance on imports.


(Global Future outlook)


Future Outlook


India’s semiconductor journey is in its early stages, but with strategic government support, partnerships, and investment, it has the potential to become a global semiconductor hub over the coming decade. This will not only bolster India’s economic growth but also enhance its position in the global technology landscape.






Sources:


• RBI Annual Report

• NITI Aayog Reports on Technology and Innovation

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