Semiconductor consumption in India to cross $80 billion by 2026: PM Modi

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Indian Prime Minister Narendra Modi said the country’s own consumption of semiconductors is expected to cross $80 billion by 2026 and reach $110 billion by 2030. PM Modi said that the country is building a digital infrastructure to connect over 1.3 billion citizens.

“We are investing heavily in skilling and training young Indians for the needs of the 21st century. We have an exceptional semiconductor design talent pool that makes up 20 percent of the world’s semiconductor design engineers. Almost all of the top 25 semiconductor design companies have their design or R&D centers in our country,” he said at the Semicon India conference.

“Our ‘Production Linked Incentives’ plans offer incentives of over $26 billion across 14 core sectors. Over the next 5 years, the electronics manufacturing sector is expected to see record growth. We recently committed over $10 billion to has announced the Semi-Con India program with a total outlay. The objective of this program is to provide financial assistance to companies investing in semiconductors, display manufacturing and design ecosystem. , It is necessary to ensure adequate support from the government. Allow me to put my point of view in the language of semiconductors only.”

“While the industry works hard, the government should work even harder. I want to assure you that we will continue to support the industry in the future as well. We have taken care to see that the Semi-Con India program addresses various parts of the ecosystem such as semiconductor fab, display fab, design, assembly, test, marking and packaging of semiconductors,” he said.

The three-day Semicon India conference aims to accelerate India’s ambition to become a global electronics and semiconductor design and manufacturing hub.

Rajiv Chandrashekhar, Minister of State for Electronics & Information Technology and Skill Development & Entrepreneurship, said in his closing remarks: “These past 3 days have been supercharged, full of energy and have brought many promises. Our mission is to make India a major player in the global semiconductor supply chain. Prime Minister Narendra Modi’s vision of creating a technology ecosystem that takes India into the next wave of digital innovation will only be possible with all the stakeholders coming together and working tirelessly so that soon we will see every ubiquitous technology Proudly declare ‘India Inside’ in the product.”

IT Minister Ashwini Vaishnav said the government has received several applications under the Semiconductor India Program (PLI scheme) and the process is expected to take around 15-18 months to complete.

Addressing the Semicon India 2022 conference in Bengaluru, the minister said there will be good news for the country by April or May next year.

“We understand that many countries are giving incentives. But what we offer is a commitment to build and grow our talent pool by 85,000 semiconductor professionals over the next ten years, with substantial incentives. These will be industry ready professionals and we have already tied up with global institutions.”

So far, India has received investment proposals from five global Semicon majors for setting up semiconductor fabs and display fabs locally in India. The proposals received so far are worth $20.5 billion in the greenfield segment of display and semiconductor chip manufacturing.

Applied Materials, the world’s largest semiconductor display equipment manufacturer, announced an investment of Rs 1,800 crore in India. The company has acquired a large land parcel in Bengaluru to set up the proposed manufacturing facility.

“Today, semiconductors are an essential part of the DNA of new-age gadgets spanning smartphones, laptops and cars. Post-Covid demand growth across sectors, said EY India Consulting AMI leader Vinay Raghunath in an earlier report Another supply chain bottleneck that automotive manufacturers need to prioritize and address.

Semiconductor manufacturing is a complex global interconnected ecosystem, which has given rise to a supply chain that is vulnerable to macroeconomics, geopolitics and natural disasters. Semiconductor companies operate in many different countries and jurisdictions, and they each have country-specific as well as international laws relating to health and environmental regulations.

As the manufacturing process is complex and the ecosystem of players is so diverse, there has been a flurry of business models with companies targeting either through market leadership or expertise, EY said.

The semiconductor manufacturing process requires very unique, and sometimes scarce, raw materials and chemical materials. Due to their unique and distinctive character, these are not widely available and can sometimes be mined only in conflict zones. Any disturbance in the supply of these materials has an immediate impact on production.

(With inputs from IANS)

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