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Like-minded Nations Collaborate with India to Establish Chip Manufacturing Hub

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In Short:

India is positioning itself as a key player in semiconductor manufacturing, aided by collaboration with several countries due to current global tensions. S. Krishnan, secretary of the Ministry of Electronics and IT, noted that companies like Micron and Tata Electronics are already producing chips in pilot facilities in India, with larger plants expected to start by late 2025. The need for secure semiconductor supply chains became clear during the pandemic, prompting investments worth Rs 1.5 lakh crore. Upcoming Semicon India events are seeing increased international interest, highlighting India’s potential as a major semiconductor manufacturing hub.


India’s Rising Star in Semiconductor Manufacturing

In light of the current geopolitical landscape, **like-minded nations** are coming together to position **India** as a major hub for semiconductor manufacturing. This insight was shared by **S Krishnan**, the Secretary of the Ministry of Electronics and IT, in an enlightening interview with PTI on Sunday.

Exciting Developments on the Horizon

Krishnan highlighted that **Micron**, a leading US-based semiconductor storage company, along with **Tata Electronics**, have successfully launched pilot facilities that are already producing chips. The main production plants, set to rise in **Gujarat**, are expected to kickstart the manufacturing of indigenous chips by late 2025.

A Strategic Shift in Global Semiconductor Supply

Reflecting on the pandemic’s impact, Krishnan emphasized the importance of resilience in semiconductor supply. The global shortage of chips disrupted several industries, including automotive and medical devices, revealing the need for greater diversification in sourcing semiconductors. “There’s a growing recognition that semiconductors are a critical and strategic asset,” he noted.

Collaborations Strengthening India’s Position

To build this resilience, **India** is collaborating with several countries, including the **United States**, **European Union**, **UK**, **Japan**, and recently, **Singapore**. “These partnerships are vital for developing India into a prominent player in the global semiconductor manufacturing arena,” Krishnan remarked.

Government Support Fuels Semiconductor Projects

So far, the Indian government has given the green light to projects involving investments of **Rs 1.5 lakh crore**. This figure doesn’t even account for the recent **Adani Group** and **Tower Semiconductor** investment of **Rs 83,000 crore** aimed at establishing a new chip plant in **Maharashtra**.

Groundbreaking Achievements

“Under the **India Semiconductor Mission**, we’ve approved five key projects. **Micron’s** main plant in Gujarat is progressing rapidly, while Tata Electronics has also launched its pilot facility for **ATMP** in **Karnataka**,” Krishnan shared. The excitement is building as we anticipate the first chips to roll out from these main plants in the latter half of 2025.

Growing Interest in India’s Semiconductor Ecosystem

There’s a remarkable surge of interest from companies within the semiconductor ecosystem, with **participation in the upcoming Semicon India event** soaring fourfold! “This interest illustrates the immense potential India holds,” Krishnan expressed.

Honoring India’s Growing Influence

As **Semi**, the global association representing semiconductor industries, prepares for this prestigious gathering, Krishnan proudly noted, “India is now counted among the few nations capable of hosting a Semicon event.” He further added that registrations for this Indian event have quadrupled compared to the first conferences held in other countries.

Expectations for Semicon India

According to Semi, the event will feature over **650 booths** and attract more than **250 semiconductor companies**. This is a testament to the momentum building within India’s semiconductor sector, and it’s no wonder that global corporations are excited about the prospects here.

The Future Looks Bright

Krishnan concluded with optimism about **India’s potential** as a leading semiconductor manufacturer that can cater to global needs. “Companies are drawn to India’s vast talent pool and burgeoning market, which presents a unique opportunity for semiconductor product sales,” he stated.

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