PM Modi boosts India’s semiconductor ascent. ₹1.25 lakh crore projects have been initiated. Let’s examine India’s path to technological leadership.
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PM Modi boosts India’s semiconductor ascent. ₹1.25 lakh crore projects have been initiated. Let’s examine India’s path to technological leadership.

Mar 11, 2024

PM Modi laid the foundations for three semiconductor projects worth a combined Rs 1.25 lakh crores.

1. Tata Semicon Fab – Dholera, Gujarat.

2. Tata OSAT – Morigaon, Assam.

3. CG Power OSAT – Sanand, Gujarat.

India’s trajectory in semiconductor manufacturing is gaining momentum, bolstered by strategic initiatives aimed at positioning the nation as a prominent player in the global semiconductor industry. This article delves into recent developments, exploring India’s journey in this crucial domain.

Manufacturing Equipment and Ecosystem Advancements

India has set ambitious goals to domestically produce all equipment, chemicals, and fabrication tools essential for semiconductor production. With a vision to foster self-reliance, the country aims to cultivate a robust semiconductor ecosystem, encompassing fabs to consumables. Notably, Applied Materials has invested $20 million in its India Validation Centre in Bengaluru, focusing on equipment development and employing 500 individuals. Such initiatives underscore India’s commitment to nurturing indigenous capabilities in semiconductor manufacturing.

Talent Pool and Design Capabilities

India boasts 20% of the global talent pool in chip design, with approximately 50,000 individuals engaged in chip design work. Major semiconductor manufacturers like Intel, AMD, and Qualcomm have established their largest research and development centres in India, leveraging local engineering expertise. This rich talent pool propels India’s prowess in semiconductor design and innovation, augmenting its global competitiveness in the industry.

Investments and Collaborative Efforts

In Dholera, Tata Electronics and Powerchip Semiconductor Manufacturing Corporation (PSMC) are set to construct India’s first AI-enabled fabrication facility, capable of producing up to 50,000 units. Additionally, Applied Materials announced a $400 million investment over four years to establish an engineering centre in Bengaluru, dedicated to semiconductor manufacturing technology. These investments underscore growing confidence in India’s semiconductor industry, paving the way for enhanced technological capabilities and collaborative endeavours.

Private 300 mm Wafer Processing Facility

Applied Materials’ newly established facility in India marks a significant milestone as the first private facility capable of processing 300 mm wafers. Surpassing the previous 200 mm wafer processing capacity in the country, this advancement signifies a critical leap forward in India’s semiconductor manufacturing capabilities. The facility’s focus on chip manufacturing equipment underscores its pivotal role in bolstering India’s semiconductor industry growth and technological advancement.

Challenges and Opportunities Ahead

Despite notable progress, India faces challenges in infrastructure development, skilling, and navigating global uncertainties. Infrastructure enhancements and skill development initiatives are imperative to sustain and accelerate India’s momentum in semiconductor manufacturing. However, India’s deep capabilities in chip design and its burgeoning manufacturing ecosystem present abundant opportunities for future growth and innovation.

India’s Path to Technological Leadership

India’s journey towards becoming a global chip powerhouse exemplifies a holistic approach, encompassing talent cultivation, strategic investments, and technological advancements. As the nation continues to fortify its semiconductor capabilities, it not only fosters self-reliance but also contributes significantly to the world’s technological landscape. The commendable commitment to innovation and self-sufficiency underscores India’s pivotal role in shaping the future of semiconductor manufacturing. Through concerted efforts and collaborative endeavours, India stands poised to emerge as a formidable force in the global semiconductor industry, driving innovation and progress on a global scale.

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