India to Host Two Multi-Billion Dollar Semiconductor Plants
Minister of Electronics and IT Rajeev Chandrasekhar has announced India's ambitious plans to establish two complete semiconductor fabrication plants in the near future. These ventures, requiring multi-billion dollar investments, are set to be led by Tower Semiconductors of Israel and Tata Group. This development signifies a pivotal moment for India's semiconductor sector.
During an exclusive interview, Minister Chandrasekhar disclosed the imminent establishment of these fabs, stressing their strategic significance in propelling India's semiconductor roadmap forward. The proposed fabs will utilize state-of-the-art 65, 40, and 28-nanometer technologies alongside several packaging proposals presently being assessed. The minister highlighted the government's dedication to accelerating these initiatives, suggesting that if not sanctioned before the forthcoming general elections, approval would be granted during Prime Minister Narendra Modi's third term.
India has been presented with four proposals for semiconductor manufacturing plants and thirteen for chip assembly, testing, monitoring, and packaging (ATMP) units, further bolstering the ongoing initiatives in the electronics manufacturing sector. This advancement resonates with India's endeavors to shift from import-substitution-oriented manufacturing to export-oriented manufacturing, a point underscored in Minister Chandrasekhar's communication with Finance Minister Nirmala Sitharaman.
The electronics manufacturing sector in India has experienced remarkable expansion, skyrocketing from Rs 1,80,454 crore (USD 29.8 billion) in FY 2013-14 to Rs 8,22,350 crore (USD 102 billion) in FY 2022-23. The sector's growth trajectory is anticipated to propel it to Rs 23,95,195 crore (USD 300 billion) by 2026. Minister Chandrasekhar credited India's achievements in electronics manufacturing to its proactive strategies, highlighting the nation's shift from being a net importer to an exporter of mobile handsets. With 99.2% of mobile handsets now manufactured domestically, India has solidified its position as a global leader in this sector, showcasing its determination to realize the goal of reaching USD 300 billion in electronics manufacturing by 2026-27.