New Delhi, September 6 (Daily Kiran) : India is ramping up its efforts to achieve self-sufficiency in the semiconductor sector and establish itself as a global hub for chip manufacturing and design. The government has launched the second phase of its semiconductor mission, known as Semiconductor 2.0, which includes an investment of approximately $13 billion (around ₹1.27 lakh crore). This new strategy aims not only to focus on chip manufacturing but also to develop the entire semiconductor value chain and cultivate skilled human resources.
According to a report by ‘This Week in Asia,’ India is shifting its focus from basic manufacturing infrastructure to areas such as design, engineering, testing, packaging, and supply chain development. The government believes that the country’s vast engineering talent and technical skills can position India as a leader in not just “Make in India,” but also “Engineer in India.”
Semiconductors are considered the backbone of the modern economy. Chips play a crucial role in nearly every contemporary electronic product, from smartphones and automobiles to AI-based systems, data centers, medical devices, and advanced computing technologies. The disruptions in the global supply chain during the COVID-19 pandemic highlighted the risks of over-reliance on a few East Asian countries. In response, India has prioritized building domestic semiconductor capabilities.
India’s greatest strength lies in its large engineering and technology workforce. This has led some industry experts to assert that India can achieve global leadership not only in chip manufacturing but also in semiconductor design and engineering. This sector offers relatively high value addition and aligns well with India’s existing talent pool.
So far, India has approved 12 semiconductor projects across six states, with companies like Micron, Kenes Semicon, and CG Semicon having commenced commercial production this year. While their current activities are primarily focused on assembly, testing, and packaging, these initiatives are seen as the beginning of a robust semiconductor ecosystem in the country.
In Gujarat, a joint project between Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Corporation is progressing rapidly. The first batch of chips from this facility is expected to be produced by December. This plant could play a critical role in strengthening India’s chip manufacturing capacity and developing a domestic supply chain.
Recently, Tata Electronics signed an $11 billion memorandum of understanding with ASML, a leading technology company from the Netherlands. This partnership aims to collaborate on the development of advanced semiconductor technologies, helping to meet the chip needs in sectors such as automobiles, AI, industrial automation, and high-performance computing.
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