In a significant development for India’s semiconductor industry, Minister of State for Electronics and Information Technology, Rajeev Chandrashekhar, announced plans for the establishment of two new semiconductor fabs alongside numerous chip assembly and packaging units. Tower Semiconductor from Israel and the Tata Group from India are set to invest billions in this initiative.
These multi-billion dollar fabs will operate with 65, 40, and 28-nanometer technology, marking a substantial advancement for India’s semiconductor capabilities. Additional proposals for packaging units are also in the pipeline, with approvals expected before or after the upcoming general elections.
Chandrashekhar, in an exclusive interaction with PTI, stated, “The names that you mentioned have submitted these big, very credible, very significant investment proposals. We see this happening in a very, very quick short term.”
This announcement follows the government’s receipt of 13 proposals for setting up ATMP (Assembly, Testing, Marking, and Packaging) units and four proposals for chip fabs. The government aims to secure $55 billion in semiconductor investments by 2026 and $110 billion by 2030.
Highlighting the neglected state of electronics and semiconductor manufacturing before 2014, Chandrashekhar noted a significant increase in in-house electronics manufacturing over the past decade. In FY 2022-23 alone, electronics manufacturing reached Rs 8.22 Lakh Crore (USD 102 billion), with projections indicating further growth to Rs 23,95,195 crore (USD 300 billion) by 2026.
Chandrashekhar emphasized India’s pivotal role in the global electronics market, citing the growth of mobile phone manufacturing in the country. “Three years ago, there were no Apple phones being manufactured in India. Today, we are exporting USD 10-12 billion worth of Apple and Samsung mobile phones,” he stated, underscoring India’s expanding presence in the sector.
The establishment of these new chip fabs signals a significant stride towards positioning India as a key player in the global semiconductor industry, fostering economic growth and technological advancement in the country.
