Modi pitches India as global chipmaking hub

Prime Minister Narendra Modi touted India as an emerging global center for semiconductor manufacturing during a conference in New Delhi on Thursday. He encouraged technology companies to invest in what he described as a reliable location for chip production. Modi met with senior executives from both Indian and international tech firms the previous day, according to his office.

Attendees included representatives from companies such as Tata Electronics, CG Power, Advantest, Applied Materials, ASML, Foxconn, Intel, and Micron.

Modi acknowledged the numerous challenges facing the semiconductor industry, but emphasized India's commitment to overcoming them. He assured that India is actively preparing itself for this role, particularly in the face of weaponized supply chains. In 2021, India launched its domestic chipmaking initiative, which has since expanded to include fabrication, design, and packaging units.

The country's semiconductor market grew from $38 billion in 2023 to an estimated $45 billion to $50 billion in 2024-25, with government targets of $100 billion to $110 billion by 2030.

However, critics argue that India is lagging behind chip leaders in Taiwan, the Netherlands, Japan, and China, having started its domestic push decades later. Modi reiterated plans to train 100,000 engineers for semiconductor projects and 10 million people in artificial intelligence, positioning India as a secure place for companies to establish operations.

In July, India approved a new semiconductor program offering over $13 billion in financial assistance to expand domestic chip production and build a broader semiconductor ecosystem. This initiative, known as Semicon 2.0, builds upon a 2021 program aimed at reducing India's dependence on imported chips and attracting investment into the sector.

On Thursday, Modi remotely inaugurated commercial production at two sites, bringing the number of semiconductor projects in commercial production in India to five. Modi stressed that achieving technological capabilities in this sector takes decades and requires a coordinated effort across various areas, including chip design, manufacturing, equipment manufacturing, material ecosystems, and testing capabilities.