India aims to ascend to the ranks of the world’s top five semiconductor producers within the next five years, as articulated by Ashwini Vaishnaw, Minister of Electronics and Information Technology, Railways, and Communications.
“The chip industry is a very complex market, and global value chains and global supply chains are extremely complex in the current context,” Vaishnaw remarked during an appearance on CNBC’s Street Signs Asia.
“We think in the next five years, we will be among the top five semiconductor nations in the world,” noted the CEO of Qualcomm to CNBC.
Taiwan presently commands approximately 46% of global semiconductor foundry capacity, with China following at 26%, South Korea at 12%, the U.S. at 6%, and Japan at 2%, according to insights from market intelligence firm TrendForce.
As tensions between the U.S. and China persist, India anticipates reaping benefits from companies seeking to diversify their supply chains away from China.
Vaishnaw emphasized India’s vision as a “trusted value chain partner” for various sectors reliant on electronic devices, including industrial and defense electronics, as well as power electronics.
He stated, “Practically every electronics manufacturer, which requires semiconductors to be designed… and manufactured,” could find India an ideal partner. He coined the term “trust shoring” to denote this collaborative effort, citing the global trust vested in India.
Qualcomm, a big chip company from the U.S., opened a new design center in Chennai, showing they’re serious about India’s growing semiconductor industry. The facility, focusing on wireless technology design, is anticipated to generate 1,600 jobs.
“We started investing in India before it was popular. We have been building a presence in India for more than a decade now,” Qualcomm’s CEO noted to CNBC. He also added, “A lot of our chips are designed in India, and that presence in India is also creating opportunities for some Indian companies.”
Prime Minister Narendra Modi recently inaugurated three semiconductor plants, underscoring India’s stride towards semiconductor self-reliance. Notably, one of these plants, a joint venture between Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Corp., aims to produce India’s first semiconductor chip by 2026.
Union Minister Rajeev Chandrasekhar hailed the initiative, asserting that “Made in India chips manufactured in India” would fortify India’s position in global value chains, positioning the nation as a semiconductor hub for the world.
Vaishnaw displayed unwavering confidence when addressing concerns raised by investors regarding India’s position in the semiconductor manufacturing landscape, asserting that the nation is well-equipped to bridge the gap and excel in this arena.
The minister foresaw a remarkable growth trajectory for the global semiconductor sector, estimating its worth to reach a trillion dollars within the next seven years. He attributed this projection to India’s abundant talent pool and concerted efforts to bolster its manufacturing capabilities.
Highlighting the pivotal role of skilled professionals, Vaishnaw voiced that “This kind of growth will require close to a million more semiconductor engineers. Where is the talent pool? Where is that ecosystem for handling the complexity of this magnitude? It’s there in India,” as per a CNBC report.
Asserting India’s opportune position in the semiconductor industry, he remarked, “This is the right time to be in the semiconductor industry, and we’ve very rapidly gained the confidence of the entire global industry.”
Foxconn, a prominent supplier to tech giant Apple, disclosed plans in November to invest over $1.5 billion in India to cater to its operational requirements, underscoring the country’s allure as a strategic investment destination.
“Globally, all the companies look at India as a natural destination for the next investment decision,” Vaishnaw affirmed, corroborating recent reports indicating the government’s review of semiconductor proposals amounting to $21 billion.
