Minister of State for Electronics and IT Rajiv Chandrasekhar revealed that India will consume about $70-80 billion worth of semiconductors by 2026 to manufacture electronics products worth $300 billion. According to the minister, the government will achieve the goal of setting up a semiconductor ecosystem in the country. ,
The Minister was speaking on the eve of announcing the first conference on Establishment of Semiconductor Ecosystem in the country – Semicon India 2022.
He said, “Demand for digital devices and electronics products is only increasing. If you look at our electronics vision document, we have announced a target of $300 billion in electronic manufacturing with $120 billion in exports. Depending on the electronics (production target by 2026), our consumption will be around $70-80 billion of semiconductors.”
Under the Semicon India programme, the government has received proposals from five companies to set up electronic chip and display manufacturing plants with an investment of Rs 1.53 lakh crore. According to the report, Vedanta Foxconn JV, IGSS Ventures and ISMC have proposed to set up electronic chip manufacturing plants with an investment of USD 13.6 billion and sought USD 5.6 billion support from the Center under the Rs 76,000 crore Semicon India program Is. Vedanta and Elest propose to set up display manufacturing units for use in mobile phones, laptops, etc. with an estimated investment of $6.7 billion.
“Well this is a reasonable estimate by industry benchmarks. However, with the current supply chain issues globally, the bigger challenge will be whether we will be able to buy $80 billion worth of semiconductors. Otherwise the numbers are not aggressive, I would say in markets like India. Which is now exporting with the PLI scheme and promoting it,” Faisal Kavusa, Founder and Chief Analyst, market research firm Tekark, told BGR.in.
Earlier, Indian conglomerate Vedanta announced that it has partnered with Hon’ble High Technology Group, also known as Foxconn, to form a joint venture to manufacture semiconductors in India.
“India’s digital economy is in an upward growth phase. Driven by the pandemic, many new digital consumers of Aspirational India have come online. As a result, India’s digital economy, especially in the 5G-led era, will see an increase in demand for electronics,” said Prabhu Ram, Head-Industry Intelligence Group (IIG), CMR.
As per the Memorandum of Understanding (MoU) signed between the two companies, Vedanta will hold majority stake in the joint venture and Vedanta Chairman Anil Agarwal will be the chairman of the new company. The Times of India reports that Foxconn will hold a 40% stake in the joint venture while Vendetta will hold a 60% stake. Together, the two companies will invest in manufacturing semiconductors in India. “This will give a significant boost to the domestic manufacturing of electronics in India. Discussions are currently underway with some state governments to finalize the location of the plant,” Vendetta and Foxconn said in a joint statement.
“This will be the first joint venture in electronics manufacturing after the announcement of the policy,” the two companies said. This is also Vedanta’s second attempt to enter the semiconductor market in India. The company attempted to establish a chip and glass manufacturing ecosystem in India by investing around Rs 60,000 crore. However, the project failed to start.
India first appeared on BGR India after consuming $80 billion worth of semiconductors to meet the $300 billion domestic electronic production target.