Modi pitches India as global chipmaking hub

Prime Minister Narendra Modi highlighted India as a potential new global center for semiconductor manufacturing during a conference in New Delhi on Thursday, Sep 17, 2023. He emphasized the reliability of Indian locations for chip production, stating that Indian-made chips are already reaching customers both domestically and internationally.

Modi met with senior executives from both Indian and global technology companies prior to the event. Notable attendees included representatives from Tata Electronics, CG Power, Advantest, Applied Materials, ASML, Foxconn, Intel, and Micron.

The prime minister acknowledged the numerous challenges facing the semiconductor industry, but expressed India's commitment to addressing these issues and becoming a dependable location for chip production. Modi assured that India is actively preparing itself for this role, especially as supply chains are increasingly being used as a tool for geopolitical influence.

In 2021, India began its domestic chipmaking initiative, supporting various fabrication, design, and packaging units. Critics argue that India is behind schedule compared to chip leaders in Taiwan, the Netherlands, Japan, and China.

Modi pledged to train 100,000 engineers and prepare 10 million people for artificial intelligence, calling the potential talent pool a "goldmine" for the industry. In July, India approved a new semiconductor program offering over US$13 billion in financial support to expand domestic chip production and develop a broader semiconductor ecosystem.

This follows the 2021 program aimed at reducing India's dependence on imported chips and attracting investment. On Thursday, Modi virtually inaugurated commercial production at two semiconductor sites, bringing the total to five in India. Establishing a successful chip industry in such a short timeframe is challenging, Modi noted, emphasizing that it requires decades to build technical capabilities in this sector.

Modi highlighted the fact that India's semiconductor market grew from US$38 billion in 2023 to an estimated US$45-50 billion in 2024-25, with government goals of reaching US$100-110 billion by 2030.