India is poised to establish two full-fledged semiconductor fabrication plants in the near future, each involving multi-billion dollar investments, announced Minister of Electronics and IT, Rajeev Chandrasekhar. These significant projects, spearheaded by Tower Semiconductors of Israel and the Tata Group, mark a major milestone in India’s semiconductor industry.
In an exclusive interview with PTI, Minister Chandrasekhar revealed the impending establishment of these fabs, emphasizing their strategic importance in advancing India’s semiconductor roadmap. The proposed fabs will operate in cutting-edge 65, 40, and 28-nanometer technologies, complemented by various packaging proposals currently under evaluation.
The minister underscored the government’s commitment to expediting these projects, indicating that if not approved before the upcoming general elections, they would receive authorization during the third term of Prime Minister Narendra Modi.
India has received four proposals for semiconductor manufacturing plants and 13 for chip assembly, testing, monitoring, and packaging (ATMP) units, augmenting the ongoing initiatives in the electronics manufacturing sector. This development aligns with India’s efforts to transition from import-substitution-led manufacturing to export-led manufacturing, as emphasized in Minister Chandrasekhar’s correspondence with Finance Minister Nirmala Sitharaman.
India’s electronics manufacturing sector has witnessed exponential growth, surging from Rs 1,80,454 crore (USD 29.8 billion) in FY 2013-14 to Rs 8,22,350 crore (USD 102 billion) in FY 2022-23. The sector’s trajectory is poised to reach Rs 23,95,195 crore (USD 300 billion) by 2026.
Minister Chandrasekhar attributed India’s success in electronics manufacturing to its proactive approach, citing the country’s transformation from a net importer to an exporter of mobile handsets. With 99.2% of mobile handsets manufactured domestically, India has emerged as a global leader in the segment, exemplifying its ambition to achieve USD 300 billion in electronics manufacturing by 2026-27.
India’s strides in electronics manufacturing not only reflect economic prowess but also underscore its aspiration to become a trusted partner in the global value chains (GVCs), offering high-quality products to enterprises, governments, and consumers worldwide.
