From The Economic Times · PTI · · 2m
India Semiconductor Play Gains Momentum
India's semiconductor sector surges with electronics demand, global supply shifts, and policy support.
In brief
India's semiconductor sector surges with electronics demand, global supply shifts, and policy support. India's semiconductor ecosystem is expanding through domestic demand, government incentives, and global investments to build a self-sufficient chip industry. Originally reported by The Economic Times.
India's Electronics Demand
The growing consumption of electronics in India, coupled with government support through incentives, and a shift in global semiconductor supply chains, are creating a strong opportunity for the country to build a domestic chip ecosystem.
AI Safety and Semiconductor Demand
Wadhera expects the AI boom to continue driving demand for GPUs, compute and memory, and argues that the semiconductor-AI linkage will grow, not weaken.
India's Semiconductor Capacity
India has made significant progress in building domestic semiconductor capacity, with many projects announced, and several facilities now into commercial production.
Geopolitical Tailwinds
In the current global scenario, India is as safe a haven as can be for anyone... So I think the fact that geopolitically we are a great place to be, if you look at the number of FTAs (free trade agreements) that we have around us, all the bilateral relations that we enjoy, and not just in terms of what is documented, but the soft power that we have become, I think that is a very strong tailwind for this supply chain-critical sector.
Government Investment Push
Under the second phase of the semiconductor programme, the government has committed Rs 1.27 lakh crore to expand the domestic ecosystem and attract global investments.
Major Investment Announcements
This month saw a slew of big-ticket announcements, including Applied Materials' USD 5 billion India plan through 2035, Lam Research's proposed Rs 10,000-crore investment, Tata Electronics' 363-acre vendor park at Dholera and Fujifilm's Rs 800-crore semiconductor materials plant.
Future Semiconductor Goals
Electronics and IT Minister Ashwini Vaishnaw recently said India wants its semiconductor capabilities to reach into everyday products such as cars, televisions and refrigerators, as well as critical power infrastructure in the coming years.
What it means
India's semiconductor ecosystem is expanding through domestic demand, government incentives, and global investments to build a self-sufficient chip industry.
