Given India’s strategic importance, it must emerge as the world’s next big semiconductor chip designer and manufacturer. Given India’s knowledge-based economy and large market base, I personally support an autonomous semiconductor sector free of governmental and bureaucratic constraints.
According to the Indian Electronics & Semiconductor Association, the Indian semiconductor sector will be valued $ 33 billion by 2025, with a 10% annual growth rate.
India is constructing an electronics system design manufacturing industry in a systematic manner. Currently, India designs approximately 3000 chips per year, with over 30,000 engineers focusing on various elements of chip design and verification.
Semiconductor chip design and manufacturing in India should benefit greatly from investment proposals thanks to government of India initiatives to boost the economy, such as the Make in India programme, 100 percent foreign direct investment (FDI), and support of subsidies and incentives, which are strategically important for job creation and skill development.
Small and medium-sized businesses must also be targeted for chip manufacture, as is the case in China, Taiwan, and Thailand. This will undoubtedly make India self-sufficient and self-reliant in semiconductor chip manufacture, filling a gap in the country’s electronics manufacturing capacity.
India has inked an MoU with the Singapore Semiconductor Industry Association to expand trade and technological cooperation in the electronics and semiconductor industries, which is positive. Companies are now realising the potential of India’s electronics industry and are significantly investing in production.
Panasonic Corp., for example, is building a new facility in Haryana that will produce refrigerators and house an appliance R&D centre for the Indian market. India is an excellent place for international R&D. Chandigarh’s Semiconductor Complex is a key fabrication plant. From the standpoint of defence R&D, the Gallium Arsenide (GaAs) production facility in Hyderabad is critical. Bangalore is quickly establishing itself as a centre for cutting-edge semiconductor start-ups.
Furthermore, the Indian government is establishing world-class infrastructure in electronics manufacturing clusters around the country.
However, because the majority of electronic components are imported, it is critical to address the import problems. Consumer demand for electronics in India is expanding as a result of the country’s growing digitization, necessitating the development of indigenous electronic manufacturing capabilities. However, from a strategic standpoint, the bulk of consumer demand cannot be fulfilled only through imports. As a result, India’s case for a self-sufficient indigenous chip manufacturing industry is compelling.
