PM Modi was speaking at the SemiconIndia annual conference in Gujarat, which was attended by several semiconductor industry executives, including Foxconn chairman Young Liu.
Dispelling the notion that the plans to make India a key player in the global semiconductor value chain may not have moved apace, Prime Minister Narendra Modi said on Friday that the country “is establishing an entire ecosystem for the industry to grow,” and would serve as a “grand conductor” of investments in the sector.
“To expedite the growth of the semiconductor sector in the country, we are continuously undertaking policy reforms,” he said. The prime minister reiterated that domestic chip manufacturing would be promoted with specific incentives, including uniform fiscal support of 50% across all technology nodes.
Modi was speaking at the SemiconIndia annual conference in Gujarat, which was attended by several semiconductor industry executives, including Foxconn chairman Young Liu.
The government is currently re-inviting applications under a $10 billion incentive package cleared by the Union Cabinet in December, 2021. The package, which aims to develop a “sustainable semiconductor and display ecosystem in the country,” is aimed at encouraging silicon semiconductor fabs, display fabs, compound semiconductors / silicon photonics /sensors, as well as semiconductor packaging and design.
Recently, Foxconn pulled out of a $19.5 billion chip joint venture with Vedanta, citing slow progress in the project. This development, and the stalling of Israel’s Tower Semiconductor’s plan to invest $3 billion in a chip unit in the country, have raised some concerns about the progress of India’s semiconductor plans.
While Liu told a TV channel on Friday that the world’s largest electronics manufacturer – which would now go solo for India plans – would invest $2 billion over the next five years, US chip maker Advanced Micro Device (AMD) also announced $400 million investments over the next five years at the event. AMD said it would build its largest design centre in Bengaluru.
Modi expressed confidence that the semiconductor industry will witness “exponential growth in India.”
“A year ago, people used to ask why they should invest in the Indian semiconductor sector. Now they ask why not invest in India,” he said, while showcasing India as “a trusted and reliable player in chip supply chain.”
The prime minister added that as many as 300 colleges in the country have been identified for starting courses on semiconductor design. “Today the world is becoming witness to Industry 4.0. Whenever the world has passed through any such industrial revolution, its base has been the aspirations of the people of a particular region. The same relation was seen between the first industrial revolution and the American dream,” he said.
“Today I see the same relation between the fourth industrial revolution and Indian aspirations,” Modi said.
According to agency reports, Foxconn is evaluating the option of a new chip plant in Gujarat and isalso in talks for a $200 million components plant in Tamil Nadu, where it assembles Apple’s iPhones.
At present, the global chips production is largely concentrated in Taiwan. The Indian chip market is seen to grow to $80 billion by 2028, almost four times the current size.
Chipmaking ventures will help India create jobs for its largely youthful population. At Friday’s event, Micron Technology CEO Sanjay Mehrotra said a planned $2.7 billion semiconductor testing and packaging unit in Gujarat would help create about 5,000 jobs in the state, Reuters reported.
https://www.financialexpress.com/industry/pm-narendra-modi-woos-chip-firms-with-50-aid-plan/3191608/
