Semiconductor diplomacy 'takes off' India's dream

Recently, Indian Prime Minister Narendra Modi announced a bold plan to boost electronics manufacturing with the ambition of turning this South Asian country into a semiconductor powerhouse.

Indian Prime Minister Narendra Modi visits Semicon India 2024. (Source: ISM)

Speaking at the opening ceremony of the Semicon India 2024 Semiconductor and Electronics Industry Exhibition in early September, Prime Minister Narendra Modi said that today's world is moving towards the era of "semiconductor diplomacy " after the era of "oil diplomacy".

In the new context of a booming semiconductor market, Prime Minister Modi has outlined a big target for India: to grow the electronics manufacturing sector (currently worth over $150 billion) to $500 billion and create 6 million jobs by the end of the decade. Mr. Modi said this growth will directly benefit India's semiconductor industry.

Bet on chips

India's goal is for 100% of electronics manufacturing to take place in the country, with New Delhi also producing semiconductor chips and finished products.

Welcoming global semiconductor manufacturers at the Semicon India 2024, Modi said: "This is the right time to come to India. You are in the right place at the right time. In India in the 21st century, chips never stop working... If chips stop working, you can come to India."

With India contributing 20% ​​of the world's workforce and growing, the country is creating a semiconductor workforce of 85,000 technicians, engineers and professionals.

India has recently taken several initiatives to boost the semiconductor industry, with the government providing 50% financial support for setting up semiconductor manufacturing facilities and state governments also being involved in the effort. Thanks to these policies, India has attracted investments worth over INR 1.5 trillion in a very short period of time and many more projects are underway.

“Our dream is that every electronic device in the world has a chip made in India,” Mr. Modi reaffirmed India’s ambition to become a semiconductor powerhouse. Previously, Prime Minister Modi shared on social network X that India is aiming to “become the center” of the global semiconductor industry.

In an effort to achieve this, India is focusing on training students and professionals in the semiconductor industry, and the Anusandhan National Research Foundation, which aims to bring new direction and energy to the Indian research ecosystem, is also focusing on this area. In addition, the country has also incubated a special research fund worth INR 1 trillion for research and development in the semiconductor industry.

International projects

Actively pursuing “semiconductor diplomacy”, India has signed a series of agreements with many partners from Japan, Singapore, Taiwan (China)… and is strengthening cooperation with the US and European countries in this field.

Recently, Tata Electronics, part of the Indian Tata Group, announced a series of cooperation plans with Japan's Tokyo Electron and Portugal's ASMPT semiconductor equipment manufacturer to boost semiconductor production. Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) also plans to build a chip factory in India in cooperation with Tata Electronics. In September 2023, Micron Technology, the largest memory chip maker in the US, started construction of a chip testing and assembly facility worth about $2.75 billion in Gujarat, India.

Besides, India has been chosen as Vice Chair of the Supply Chain Council of the Indo-Pacific Economic Framework and a key partner in the Quad (Quad) Semiconductor Supply Chain Initiative.

Ahead of Semicon India 2024, Prime Minister Modi chaired a roundtable meeting with CEOs of semiconductor manufacturers. The CEOs appreciated India’s commitment to the development of the semiconductor sector and said that what is happening is unprecedented in bringing leaders of the entire semiconductor sector under one roof.

Mr. Sanjay Mehrotra, CEO of Micron Technology, commented: "This is the perfect time for India's semiconductor mission, to develop opportunities in this field. In the context of artificial intelligence (AI) will develop, the opportunities will increase and I believe that the best is still waiting for us ahead." Meanwhile, Mr. Kurt Sievers, CEO of NXP Semiconductors (Netherlands) expressed his agreement with Prime Minister Modi's consistency and vision to develop India's semiconductor ecosystem.

"India's semiconductor ecosystem is the solution not only to India's challenges but also to global challenges, be it a pandemic or a war, there is no industry that is not affected by supply chain disruptions," Modi stressed, expressing confidence and optimism in India's ability to strengthen global efforts to boost the semiconductor industry.

Semicon India 2024, which took place from September 11-13 in New Delhi, was the first exhibition organized by the Semiconductor Trade Association International (SEMI) in India. More than 250 domestic and international companies participated in the event, thanks to incentives worth up to INR 760 billion (equivalent to USD 9 billion) to boost domestic manufacturing. India is the eighth country to host the event, after the US, Japan and several European countries.

Source: https://baoquocte.vn/ngoai-giao-ban-dan-cat-canh-giac-mo-an-do-287793.html