As the Semicon India 2024 conference kicks off in Greater Noida, Union Minister Ashwini Vaishnaw has outlined a bold vision for the nation’s semiconductor industry. Addressing attendees on the first day of the three-day event, Vaishnaw highlighted India’s objective to develop and launch three to four major semiconductor design products in the coming years.
The Semicon India initiative, which began in 2021, is designed to enhance the country’s semiconductor capabilities through subsidies for semiconductor fabrication plants, chip packaging, sensors, and design. Vaishnaw noted that over a dozen semiconductor design firms have already received financial backing under this scheme and are progressing with their projects. Several of these firms have also attracted venture capital interest, signaling a growing confidence in the sector.
The minister emphasized the rapid progress India has made in establishing semiconductor facilities, stating that the country has set a global benchmark for expeditious approvals and construction. “In a remarkably short span, we have approved five semiconductor units. Construction is underway for the Micron unit and the Tata unit in Morigaon, while work on the remaining three units will commence soon,” Vaishnaw said.
Currently, there are five significant semiconductor proposals with a combined investment of approximately ₹1.52 lakh crore. To support this growth, the Indian government has committed to cultivating a skilled workforce of 85,000 engineers and technicians over the next decade. This effort includes collaboration with 113 universities and research institutions to develop specialized semiconductor-focused curricula.
Vaishnaw underscored the semiconductor industry’s important role in economic expansion across multiple sectors, including automotive, medical, industrial, transport, and consumer electronics. He connected this growth to Prime Minister Narendra Modi’s vision of democratizing access to technology and boosting India’s global standing in semiconductor manufacturing.
The conference also saw Prime Minister Modi announce the establishment of a ₹1 lakh crore reserve fund dedicated to fostering innovation within the semiconductor and science and technology sectors. Modi detailed a comprehensive strategy to enhance semiconductor production in India, which includes offering up to 50% fiscal support to companies setting up semiconductor fabrication units. This initiative is part of the broader Semicon India program, which features a total outlay of ₹76,000 crore in demand incentives.
Recent developments underscore the government’s commitment to promoting India as a semiconductor manufacturing hub. Noteworthy projects include Maharashtra’s approval of Adani Group’s ₹83,947 crore ($10 billion) semiconductor plant in collaboration with Israel’s Tower Semiconductor and the Union Cabinet’s endorsement of Kaynes Semicon’s ₹3,300 crore unit in Gujarat.
Additionally, Micron’s $2.75 billion plant and Tata Group’s two new facilities in Gujarat and Assam represent significant investments, while CG Power and Japan’s Renesas are establishing a ₹7,600 crore plant in Gujarat’s Sanand.
The Indian government is also considering establishing a dedicated research and development facility, the India Semiconductor Research Centre (ISRC). Last year, the government allocated ₹1,000 crore to support semiconductor design startups and a further $10 billion for manufacturing research and development.
