India to join high-stake global stage of chip manufacturing in 5 years: IT Minister Vaishnaw

India in next five years will be part of high-stake global st of semiconductor manufacturers, combining unparalleled design capabilities with $10 billion of incentives that will attracting manufacturers for establishing new units for semiconductor fabrication plants, and le to a cut in dominance of Taiwan, South Korea and China, IT and Telecom Minister Ashwini Vaishnaw said.

Union Minister said India's well-crafted policies are alluring manufacturers for setting up new ‘fabs’, pouring investment in related sectors.

Semiconductors are an integral component of electronic devices, which are used in automobiles, computers, mobile phones and even washing machines.

India houses factories of best-kwn automobile companies from Renault-Nissan to Hyundai, computer manufacturers like Dell, Apple suppliers as well as electronics companies like Samsung which produce TVs, washing machines and fridges.

India is w looking at stepping up value chain for manufacturing with a high-stake in semiconductor manufacturing. 

Prime Minister Narendra Modi-led government has provided incentives worth Rs 76,000 crore as part of setting up units, which have attracted interest from four players including Micron and Tata Group.

Union Minister Vaishnaw said country alrey has about one-third of global design talent.

government is leveraging this, as well as India's geopolitical clout in order to be an indispensable partner for techlogical ambitions of United States, which are looking at decoupling ir supply chains from China akin to or western ecomies as well.

draconian lockdowns of Beijing led to a disruption in global chip supply chain, sending companies and governments on a hunt for alternative sources of production.

India presents itself as a tech hub which is democratic, and provides a trusted alternative to China.

"People who were earlier thinking when should we go to India or should we go to India...w y are asking how soon do we go to India...that is change which is happening. This means, practically every big player would w like to reconsider ir investment plans and come to India," he told PTI.

minister specified a 5-year timeline when asked about when India would become a formidable player competing with kwn semiconductor destinations. 

Union Cabinet last week greenlighted proposals for setting up three silicon chip plants, which include a mega fab by Tata Group at a consolidated investment of Rs 1.26 lakh crore.

This is as India moved to position itself as an international powerhouse in semiconductor manufacturing.

"...it is very important for any developing country, an ecomy of our size, to have a semiconductor supply chain within country. We have very strong design capabilities, as a corollary of design capabilities we must have manufacturing capability also because that is where value gets ded furr," Vaishnaw explained.

semiconductor plans will make India self-reliant, triggering a multiplier effect on ecomy and various industries, and create jobs as well as spurring livelihoods, Minister said.

" semiconductor industry is a big multiplier for many more industries -- automobiles, electric vehicle, electronics, power electronics, defence -- every manufacturing sector requires semiconductors. So having that as a semiconductor value chain within ecosystem will be pull for all of se," Vaishnaw said.

As per anuncements, Tata Electronics Pvt Ltd will partner with Taiwan's Powerchip Semiconductor Manufacturing Corp to set up a semiconductor fab at Dholera's special industrial region in Gujarat.

plant will be able to produce 50,000 wafers per month, and encapsulates an investment of Rs 91,000 crore.

Driven by vanced techlogy, se semiconductors will cater to power manment chips for electric vehicles (EV), telecom, defence, automotive, consumer electronics, display, and power electronics.

government has also approved a proposal by Tatas to build a greenfield semiconductor assembly and test facility in Jagiro, Assam. Built with an investment outlay of Rs 27,000 crore, facility is expected to generate over 27,000 direct and indirect jobs in region.

tably, this marks first semiconductor unit of country in rast region.

Tata Semiconductor Assembly and Test (TSAT) will develop indigeus vanced semiconductor packaging techlogies, which include flip chip and ISIP (integrated system in pack) techlogies and have a capacity of manufacturing 48 million chips per day. Target segments for produced chips include automotive, electric vehicles, consumer electronics, telecom, and mobile phones, as well as ors.

third proposal having got Cabinet d is by CG Power, which will set up a unit in Sanand in Gujarat in partnership with Renesas Electronics Corp and Stars Microelectronics of Thailand. project will entail an investment of Rs 7,600 crore.

India is aiming to attract global and domestic chip makers for setting up ir production base in India with multi billion dollar ($10 billion) incentive scheme.

Computer stor chip maker Micron was first to anunce setting up its semiconductor assembly and test plant in Gujarat. project, anunced in 2023 at a total investment of $2.75 billion (around Rs 22,540 crore), would create 15,000 direct and indirect jobs in region.

(With PTI Inputs)