Semiconductor Manufacturing in India Union Minister Ashwini Vaishnaw recently announced that India's first domestically manufactured semiconductor chip will be launched by the end of this year. This step marks a significant milestone towards India's self-reliance in the digital and technology sector. Significant efforts are underway for the chip's manufacturing, with testing of machines already commencing at various locations.
Significant Progress in Semiconductor Manufacturing
In Dholera, Gujarat, a partnership between Tata Electronics and Powerchip Semiconductor Manufacturing Corporation (PSMC) is building the country's first semiconductor factory. This initiative is a crucial step towards making India self-reliant in semiconductor manufacturing. The Union Minister stated that the construction of five units is progressing smoothly and chip production will commence by the end of the year.
Government's Semiconductor Mission and Support
The Indian government approved the establishment of three semiconductor units in the country in February 2024. Prior to this, in December 2021, the Prime Minister approved the ‘Semicon India’ program, aiming to boost the semiconductor and display manufacturing ecosystem with an investment of ₹76,000 crore (approximately $9.2 billion USD). To ensure the mission's success, the Indian government established the Semiconductor Mission (ISM), operating under the Digital India Corporation. Its objectives include promoting semiconductor manufacturing and design.
India's Growing Strength in AI and Electronics
The Union Minister also highlighted India's role in AI (Artificial Intelligence). He stated that India's foundational AI model will be ready in 5-6 months. Furthermore, India has witnessed a fivefold increase in electronics manufacturing and a sixfold increase in exports over the past 10 years. This sector has provided employment to over 2.5 million people, a significant portion of whom are from rural areas.
This progress has been facilitated by government schemes like the PLI (Production Linked Incentive) scheme, which is helping to establish India as a robust global player in electronics and semiconductor manufacturing.
