India highlights 13 outcomes from SCO summit

India is finally establishing a semiconductor industry after decades of attempts, as Electronics and IT Minister Ashwini Vaishnaw highlighted in a recent video. Semiconductors are fundamental to the production of products ranging from household appliances to advanced transportation systems, making the industry a crucial part of India's future.

Vaishnaw pointed out that while attempts to establish the industry have been ongoing since the 1960s, the country has now successfully created a foundation for semiconductor production. This achievement is part of a broader effort to build capabilities throughout the industry, rather than focusing solely on individual factories.

The government's Semicon 2.0 plan, approved in July, allocates Rs 1.27 lakh crore for the next phase of development. This plan encompasses six key areas, including chip design, semiconductor machines and materials, fabrication facilities (fabs), and advanced packaging. Vaishnaw emphasized the importance of a complete value chain, from raw materials and silicon ingots to finished chip products.

He explained that creating intricate circuits on tiny pieces of silicon requires specialized machines, as the level of precision is beyond human capabilities.

India has already made progress with the first phase of Semicon 1.0, which approved twelve projects totaling over Rs 1.64 lakh crore in investment. These projects include a silicon fab, a silicon carbide fab, a gallium nitride micro-LED display fab, and nine packaging units. Companies like Micron have already begun commercial production at their Sanand facility, which converts DRAM and NAND wafers into finished memory and storage products.

However, India still faces challenges in advancing its fabrication capabilities and developing deeper domestic competence. The first silicon fab is targeted for commissioning in 2028, while Semicon 2.0 aims to expand advanced packaging and support local manufacturing of essential equipment, materials, and chemicals.

To build a design and skills base, the government has provided financial support to 24 semiconductor design projects and made electronic design automation tools available to 105 startups and MSMEs. Students from Tier-II and III cities have already designed more than 250 chips, and over 85,000 semiconductor engineers have been developed in four years.

Looking ahead, the global semiconductor market is expected to reach $1.655 trillion by 2026, driven by memory and AI infrastructure. As other governments compete to strengthen domestic supply chains, India faces the challenge of not only starting to make chips but also building a robust ecosystem to compete across the entire value chain.

Vaishnaw emphasized this long-term vision, stating that the government's strategy is focused on a 20-year outlook rather than short-term gains.