Semiconductor diplomacy 'takes off' India's dream

Recently, Indian Prime Minister Narendra Modi announced an ambitious plan to boost the electronics manufacturing industry with the aim of transforming this South Asian nation into a semiconductor powerhouse.

Indian Prime Minister Narendra Modi visits the Semicon India 2024 semiconductor and electronics industry exhibition. (Source: ISM)

Speaking at the opening ceremony of the Semicon India 2024 semiconductor and electronics industry exhibition in early September, Prime Minister Narendra Modi remarked that the world today is moving towards an era of "semiconductor diplomacy " following the era of "oil diplomacy".

Against the backdrop of a booming semiconductor market, Prime Minister Modi has outlined a major goal for India: to grow its electronics manufacturing sector (currently worth over $150 billion) to $500 billion and create 6 million jobs by the end of this decade. Modi stated that this growth will directly benefit India's semiconductor industry.

Place your bets on the chips.

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

Welcoming global semiconductor manufacturers at the Semicon India 2024 semiconductor and electronics industry exhibition, Mr. Modi declared: "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 look to India.”

With India contributing 20% ​​of the world's workforce and that number steadily increasing, the country is creating a semiconductor workforce of 85,000 technicians, engineers, and specialists.

Recently, India has actively implemented various measures to promote the semiconductor industry, specifically by providing 50% financial support for the establishment of semiconductor manufacturing facilities, and by mobilizing state governments to participate in this effort. Thanks to these policies, India has attracted investments worth over 1.5 trillion INR in a very short time, and many more projects are underway.

"Our dream is for every electronic device in the world to have chips made in India," Modi reaffirmed India's ambition to become a semiconductor powerhouse. Earlier, Prime Minister Modi shared on social media that India is aiming to "become the center" of the global semiconductor industry.

To achieve this goal, India is focusing on training students and professionals in the semiconductor industry, and the Anusandhan National Research Fund, aimed at providing new direction and energy to India's research ecosystem, is also concentrating on this field. In addition, the country is developing a special research fund worth 1 trillion INR for semiconductor research and development.

International projects

Through active "semiconductor diplomacy," India has signed numerous agreements with partners from Japan, Singapore, Taiwan (China), and is strengthening cooperation with the US and European countries in this field.

Recently, Tata Electronics, part of India's Tata Group, announced a series of collaborations with Japan's Tokyo Electron and Portugal's semiconductor manufacturer ASMPT to boost semiconductor production. Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) is also partnering with Tata Electronics to plan the construction of a chip manufacturing plant in India. In September 2023, Micron Technology, the largest memory chip manufacturer in the US, began construction of a chip testing and assembly facility worth approximately $2.75 billion in Gujarat, India.

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

Ahead of Semicon India 2024, Prime Minister Modi chaired a roundtable meeting with CEOs of semiconductor manufacturers. The CEOs praised India's commitment to the development of the semiconductor sector and stated that what was happening was unprecedented, bringing together leaders from across the semiconductor industry "under one roof."

Sanjay Mehrotra, CEO of Micron Technology, commented: "This is the perfect time for India's semiconductor mission to develop opportunities in this field. With the rise of artificial intelligence (AI), opportunities will only increase, and I believe the best is yet to come." Meanwhile, Kurt Sievers, CEO of NXP Semiconductors (Netherlands), expressed his agreement with Prime Minister Modi's consistency and foresight in developing India's semiconductor ecosystem.

"India's semiconductor ecosystem is the solution not only to India's challenges but also to global challenges, whether it's a pandemic or war; no industry is unaffected by supply chain disruptions," Modi emphasized, while expressing confidence and optimism in India's ability to bolster global efforts to boost the semiconductor industry.

Semicon India 2024, held from September 11-13 in New Delhi, was the first exhibition organized by the Semiconductor International Trade Association (SEMI) in India. Over 250 domestic and international companies participated, thanks to incentive packages totaling INR 760 billion (approximately USD 9 billion) aimed at boosting domestic production. India became the eighth country to host this event, following the US, Japan, and several European nations.

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