Prime Minister Narendra Modi on Friday announced that Made-in-India semiconductor chips will be available in the market by the end of this year, pushing the need for the country’s semiconductor manufacturing.
Speaking from the ramparts of Red Fort in his 12th Independence Day speech, the PM recalled how plans for a semiconductor factory began 50-60 years ago but the files were left to “atak, latak and bhatak,” translating to English as stuck, dangling and wandering in bureaucratic limbo.
Now, he said, the country is in “mission mode,” with six semiconductor units in the pipeline and four new ones already approved, and promised that “Made-in-India chips” will be available in the market by year-end.
He added that India could have been competing with other countries, like Taiwan, US, China and South Korea, who are leading in production, design and export of semiconductors.
For context, Taiwan dominates nearly all of the world’s most advanced chip production, making about 90% of these semiconductors, mostly through Taiwan Semiconductor Manufacturing Company (TSMC), the largest chipmaker and a key supplier to Apple and Nvidia.
{{/usCountry}}For context, Taiwan dominates nearly all of the world’s most advanced chip production, making about 90% of these semiconductors, mostly through Taiwan Semiconductor Manufacturing Company (TSMC), the largest chipmaker and a key supplier to Apple and Nvidia.
{{/usCountry}}“This is a technology-driven century. Whichever country embraced technology, they reached great heights… You’ll be surprised to know that semiconductors, which have now become the backbone of many nations, the files of those plans in India were stuck, left and forgotten. The thinking behind semiconductors was killed. We lost 50-60 years. Many countries in the meanwhile continued to gain strength in semiconductors. But today, we are rid of that burden,” said PM Modi.
Under the IT ministry’s India Semiconductor Mission (ISM), ten semiconductor units have been announced so far, most focused on assembly and packaging, with only two dedicated to fabrication.
As HT reported earlier, the first “Made-in-India” chip expected this year will be a packaged chip, not one produced in a foundry (fabrication unit).
Announcing four new units on Tuesday, IT minister Ashwini Vaishnaw said there is intense competition brewing between three semiconductor facilities to roll out the first such chip before 2025. According to a senior ministry official, the contenders are based out of Gujarat, namely Tata-Micron OSAT, CG Power-Renesas OSAT, and Kaynes Technology OSAT, all located in Sanand.
Of the 10 semiconductor units approved till now, four are in Gujarat, two in Odisha, one each in Assam, Uttar Pradesh, Andhra Pradesh, and Punjab. The chips coming out of these units will be used in sectors like consumer electronics, automotive, defence, telecommunications, mobile phones, renewable energy, among others.