Prime Minister Narendra Modi on Wednesday called for making India a global semiconductor hub and pointed out that this is the right time to invest in India’s semiconductor industry. Modi said India is well-positioned for success in this field and that the world can count on India’s growing semiconductor ecosystem. Modi said that India is now the eighth country globally to host an event focused on the semiconductor industry.

Speaking at the SEMICON 2024 conference at Greater Noida, Modi said the Covid pandemic showed the importance of the supply chain and underscored the need to act to ward off any disruption.  “Whether it was Covid or war, there hasn’t been a single industry to remain unaffected by supply chain disruptions,” he said. Stating that India is a huge consumer of such chips, he emphasised that the world’s finest digital public infrastructure was built upon it. “This small chip is doing big things to ensure last-mile delivery in India,” Modi said.

During his speech, he mentioned various initiatives and achievements that position India as a key player in the global semiconductor industry.

Interestingly, Semiconductor stocks rallied after PM Modi asserted India’s commitment to building and growing its semiconductor infrastructure at the Semicon India 2024 event. The Prime Minister also highlighted the importance of partnerships between industries and the Government.

The Prime Minister said resilience of supply chains is critical for the economy as he made a pitch to boost investments in domestic manufacturing of semiconductors — the foundation of everything from smartphones to EV and AI. 

Stressing the importance of a resilient supply chain, the Prime Minister expressed pride in India’s central role in building resilience across sectors, positioning the country as a key player in the global mission to safeguard supply chains. 

Prime Minister showcased India’s reformist regime,

stable policies and a market that has tasted technology to make a strong pitch for investments in semiconductor manufacturing.

“In 21st-century India, the chips are never down.”  “Whether it is mobile manufacturing, electronics, or semiconductors, our focus is clear  -  we want to build a world that doesn’t stop or pause in times of crisis but keeps moving forward,” he said.

The Prime Minister also spoke about the comprehensive approach under the Semicon India Program, which provides financial assistance for front-end fabs, display fabs, and semiconductor packaging, ensuring that all critical components of the supply chain are covered.

“A recent report shows that Bharat is now the second-largest market for 5G handsets. Just two years ago, we started the 5G rollout. Look at where we have reached today. Today, Bharat’s electronics sector has grown to over 150 billion dollars. And our goal is even bigger. We want to grow our electronics sector to 500 billion dollars by the end of this decade. This will create about 6 million jobs for the youth of Bharat. Bharat’s semiconductor sector will also benefit greatly from this. Our goal is for 100 percent of electronic manufacturing to be done in Bharat. This means Bharat will not only make semiconductor chips but also their finished goods,” he said.

He announced that the Government is offering 50 per cent financial support for setting up semiconductor manufacturing facilities, with State Governments also actively participating in the process.

This has attracted investments worth over Rs 1.5 trillion, and more projects are expected to follow. That programme has drawn nearly Rs 1.5 lakh crore of investment in producing about 70 million chips per day.  Tata is partnering Taiwan’s Powerchip Semiconductor Manufacturing Corp to set up India’s first chipmaking plant worth Rs 91,526 crore in Gujarat’s Dholera. Its unit Tata Semiconductor Assembly and Test Pvt Ltd is also investing Rs 27,120 crore to set up a unit in Assam.

 US memory maker Micron Technology Inc is also setting up Rs 22,516 crore assembly facility in Gujarat, while Adani Group plans to build a chip plant in Maharashtra with Israel’s Tower Semiconductor at a cost of Rs 83,947 crore. Also, CG Power is partnering with Japan’s Renesas Electronics Corp and Thailand’s Stars Microelectronics for Rs 7,584 crore chip packaging plant in Gujarat.

Explaining that India holds a three-dimensional power - a reformist government, growing manufacturing base and aspirational market which is aware of the technological trends, the Prime Minister said that this base of 3D power is difficult to find elsewhere.