Prime Minister Narendra Modi met with CEOs of prominent US companies in Washington on Thursday, where he extended an invitation to American chip maker Micron Technology to bolster semiconductor manufacturing in India. Modi highlighted India’s competitive advantages across various segments of the semiconductor supply chain.
He also invited Applied Materials to invest in India for the development of process technology and advanced packaging capabilities. During his discussion with Gary E Dickerson, President and CEO of Applied Materials, Modi explored the potential of collaboration between the company and Indian academic institutions to cultivate a skilled workforce.
In terms of semiconductor development, US companies are partnering with India to establish an ecosystem that promotes supply chain diversification. Micron Technology, with support from the Indian National Semiconductor Mission, announced an investment exceeding $800 million.
With additional financial backing from Indian authorities, the total investment will amount to a $2.75 billion semiconductor assembly and test facility in India.
In addition, Applied Materials unveiled plans for a new semiconductor center dedicated to commercialisation and innovation in India. Lam Research, another semiconductor manufacturing equipment company, is set to announce a training programme for 60,000 Indian engineers through its semi-verse solution, aimed at accelerating India’s semiconductor workforce development goals.
“On critical minerals and mineral security, the United States will announce its support for India becoming a member of the Mineral Security Partnership led by the US State Department.”
This partnership aims to strengthen the critical minerals supply chain and ensure an adequate supply of essential minerals for climate, economic, and strategic technology objectives,” a senior administration official said.
The Ministry of External Affairs confirmed the Prime Minister’s invitation to Micron Technology, stating, “The Prime Minister invited Micron Technology to boost semiconductor manufacturing in India.” Following the meeting, Micron Technology CEO Sanjay Mehrotra expressed enthusiasm about the opportunities in India, highlighting the company’s global leadership in memory and storage.
Gary E Dickerson, after his meeting with the Prime Minister, emphasised the potential for incredible growth in India and expressed eagerness to work together for shared success.
During his engagement with H Lawrence Culp, CEO of General Electric (GE), Modi invited the company to play a larger role in India’s aviation and renewable energy sectors. Officials noted the Prime Minister’s appreciation for GE’s long-term commitment to manufacturing in India and discussed the potential for enhanced technology collaboration to promote manufacturing within the country.
India has been actively promoting semiconductor development and has introduced a production-linked incentive (PLI) scheme for this purpose. Global companies are exploring India as an attractive investment destination for semiconductor manufacturing, positioning the country as one of the most appealing locations in Asia for electronics and semiconductors.
While the Indian semiconductor market was valued at USD 27.2 billion in 2021, it is projected to grow at a robust compound annual growth rate (CAGR) of nearly 19 percent, reaching USD 64 billion by 2026. However, domestic chip manufacturing is still in its nascent stages.
Setting up semiconductor fabs (fabrication units) is a highly specialised, complex, and capital-intensive endeavor. Fabs require advanced technology, entail high risks, and have long gestation and payback periods.
The Prime Minister’s engagement with top US companies reflects India’s determination to bolster its semiconductor manufacturing capabilities and attract investments in this critical sector. These collaborations have the potential to enhance India’s position as a key player in the global semiconductor industry, driving economic growth and technological advancement.
