India’s chip manufacturing advancements under PM Modi challenge China’s dominance

India’s ambitious semiconductor journey with $15.14 billion investment in three new projects is set to challenge China’s dominance in the global silicon market. The groundbreaking ceremony for Tata Group’s two projects in Gujarat and Assam is part of PM Modi’s initiative to build a strong semiconductor ecosystem.

The new units in Dholera, Gujarat, and Assam, along with CG Power’s unit in Gujarat, aim to generate direct employment of 20,000 advanced technology jobs. India’s focus on chip fabrication will complement its existing capabilities in chip design, potentially challenging China’s market share.

Industry experts believe that global investments in the semiconductor industry are shifting away from China, with India emerging as a favorable destination for tech companies. The strategic move is aimed at establishing a thriving semiconductor ecosystem in the country, leveraging India’s research talent and English-speaking workforce.

With the upcoming inauguration of the Micron semiconductor plant in Gujarat, followed by Tata’s semiconductor fab and ATMP unit, India is set to become a significant player in semiconductor manufacturing. These projects will not only boost job creation but also accelerate technological advancements in various sectors.

The government’s Production Linked Incentive (PLI) scheme for IT hardware and servers is expected to further expand investments in the electronics manufacturing ecosystem. India aims to reach $300 billion in electronics production, with a focus on broadening and deepening the manufacturing base in the country.