Every major chip player is going to rework the investment plan for India: Vaishnaw | News – Business standard

India has set its sights on becoming a formidable force in the global semiconductor industry, rivaling big-name destinations such as Taiwan and South Korea in the next five years. in the country.

In an interview with PTI, the IT and Electronics Minister said he strongly believes that almost every major player would now want to reconsider their investment plans and come to India, given the carefully crafted policies here.

India will build on its design capabilities, where the country already has inherent and proven mettle and, notably, almost a third of the global talent.

That component, in addition to the proposed factory (chip manufacturing plant) and the three ATMP (assembly and test) units in India, now effectively brings together key elements of the semiconductor value chain, he said.

“…people who were earlier thinking: when should we go to India or should we go to India… now they are asking how soon we are going to India… that is the change that is happening. This means practically Every major player would now like to reconsider its investment plans and come to India,” he said.

Asked about the timelines in which India aims to become a formidable player to rival well-known semiconductor destinations, the minister said, “Certainly in the next five years.”

The comments take on significance as semiconductors emerge as a new frontier in the geopolitical arena amid tensions between the US and China, and India has moved quickly to line up incentives that would position the country as an attractive destination for global companies looking for alternatives to expand their activities. for domestic champions to take the plunge in this high-tech arena.

In fact, India’s bold steps to align policies and sweeteners for semiconductor manufacturing have led to its first commercial proposal.

This week, the government approved proposals to set up three semiconductor factories, including a Tata Group mega-factory, at a cumulative investment of Rs 1.26 trillion, as India positions itself as an international chip manufacturing powerhouse.

“…it is very important for any developing country, an economy of our size, to have a semiconductor supply chain in the country. We have very strong design capabilities, as a corollary to design capabilities we must also have manufacturing capabilities because that is where the value is further added,” explains Vaishnaw.

The semiconductor plans will make India self-reliant, bring about a multiplier effect on the economy and various industries, create jobs and boost livelihoods, the minister said.

“The semiconductor industry is a big multiplier for many more industries – automotive, electric vehicles, electronics, power electronics, defense – every manufacturing sector needs semiconductors. So having that as a semiconductor value chain within the ecosystem will be a draw for everyone. this one,” said Vaishnaw.

According to the announcements, Tata Electronics Pvt Ltd in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corp will set up a semiconductor manufacturing facility in the special industrial region of Dholera in Gujarat. The plant will have a capacity to produce 50,000 wafers per month and require an investment of Rs 91,000 crore.

These chips, powered by cutting-edge technology, will target multiple sectors: power management chips for electric vehicles (EV), telecom, defense, automotive, consumer electronics, displays and power electronics.

The government has also approved a proposal by Tatas to build a greenfield semiconductor assembly and testing facility in Jagiroad, Assam. The facility will be built at an investment amount of Rs 27,000 crore and is expected to generate over 27,000 direct and indirect jobs in the region.

Notably, this will be India’s first semiconductor unit in the Northeast.

Tata Semiconductor Assembly and Test (TSAT) will develop indigenous advanced semiconductor packaging technologies, including flip chip and ISIP (integrated system in package) technologies, with a capacity of 48 million chips per day. The target groups for this include the automotive sector, electric vehicles, consumer electronics, telecom and mobile phones.

The third proposal that has received Cabinet approval is from CG Power, which will set up a unit at Sanand in Gujarat in partnership with Renesas Electronics Corp and Stars Microelectronics of Thailand at an investment of Rs 7,600 crore.

India wants to convince global and domestic chipmakers to establish a manufacturing base in India with its multi-billion dollar ($10 billion) incentive program.

Advanced chips are part of everyday life and are used in mobile phones, refrigerators and cars in the high-tech industry. Boosting the local industry with carefully designed plans and incentives will connect India to an ever-growing, booming global chip market.

In the current situation, the global shortage of semiconductors in the past has emphasized the importance of this crucial component in modern electronics.

Earlier, computer storage chip maker Micron announced that it will set up its semiconductor assembly and testing plant in Gujarat, entailing a total investment of $2.75 billion (about Rs 22,540 crore).

First print: March 3, 2024 | 1:29 p.m IST