India’s emergence as a global chip manufacturing hub is not a distant dream, says industry leaders

New Delhi, March 1 (IANS) Top industry bodies have lauded the government’s approval of three semiconductor fabrication projects worth Rs 1.3 lakh crore. The Union Cabinet’s decision marks a significant step towards India emerging as a global semiconductor manufacturing destination.

The semiconductor fab with 50,000 wafers per month capacity will be set up by Tata Electronics Private Ltd (TEPL) in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, in Dholera, Gujarat. This fab will be constructed with an investment of Rs 91,000 crore.

Pankaj Mohindroo, Chairman, India Cellular and Electronics Association (ICEA) stated, “By 2027, India will have the fab and Outsourced semiconductor assembly and test (OSAT) units producing.” He further added, “By the end of the decade, we may have more than 10 fabs and 20 OSAT units in production, besides many semiconductor product design companies.”

According to Lt Gen Dr SP Kochhar, Director General, Cellular Operators Association of India (COAI), the approval on the establishment of three semiconductor units under the India Semiconductor Mission is a positive and commendable development. Kochhar also mentioned that this move aligns with Prime Minister Narendra Modi’s vision of ‘Atmanirbharta’.

Furthermore, these semiconductor facilities are expected to boost India’s ‘Digital India’ mission by enhancing technological capabilities and advancing the indigenous industrial ecosystem. It is also anticipated to create employment opportunities and attract more investments in the country.

India has already established itself as a leader in chip design. With the approval of these semiconductor units, the country is set to develop capabilities in chip fabrication. This move signifies a significant milestone towards achieving self-sufficiency in semiconductor manufacturing and bolstering India’s position as a global manufacturing and supply chain hub.