India is making significant strides in bolstering its semiconductor manufacturing capabilities through substantial investments, strategic partnerships, and educational initiatives. These efforts aim to position the country as a global leader in the semiconductor industry.
Investment and Growth
- Lam Research’s Investment: U.S.-based chip toolmaker Lam Research has announced plans to invest over ₹100 billion (approximately $1.2 billion) in Karnataka, India. This investment is part of a memorandum of understanding with the Karnataka Industrial Area Development Board, aiming to enhance India’s semiconductor ecosystem.
- NXP Semiconductors’ Expansion: NXP Semiconductors plans to invest over $1 billion in India to double its research and development efforts in the coming years. This move aligns with India’s $10 billion incentive package designed to boost its semiconductor industry, which is projected to reach a market value of $63 billion by 2026.
- Government Approvals for Semiconductor Plants: The Indian government has approved three proposals for semiconductor plants, with a total investment of ₹1.26 lakh crore. These include:
- A semiconductor fabrication plant by Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) in Dholera, Gujarat, with an investment of ₹91,000 crore.
- A semiconductor assembly and testing unit by Tata in Assam, costing ₹27,000 crore.
- A semiconductor plant by CG Power and Japan’s Renesas in Sanand, Gujarat, with an investment of ₹7,600 crore.
- Adani and Tower Semiconductor Collaboration: Israel’s Tower Semiconductor and India’s Adani Group plan to invest $10 billion to establish a semiconductor manufacturing plant in Maharashtra. This initiative is part of India’s strategy to become a leading global chipmaker.
Educational Initiatives
- University Programs: India is equipping 234 universities with the latest semiconductor design tools to prepare the next generation of engineers for innovation in semiconductor technology.
- Research and Development: The Indian Institute of Science (IISc) in Bengaluru has received a grant of ₹334 crores for research and development in gallium nitride technology, which is crucial for the telecom and power sectors.
India Semiconductor Mission (ISM)
- ISM 1.0: The Ministry of Electronics and Information Technology is collaborating with industry partners to complete ISM 1.0, which includes modernizing the Semiconductor Lab in Mohali.
- ISM 2.0: Following the completion of ISM 1.0, the ministry plans to seek approval for ISM 2.0. This phase will focus on bringing the entire semiconductor manufacturing supply chain to India, including equipment manufacturers and specialized materials.
Semiconductor Lab Mohali Modernization
- Modernization Efforts: The Semiconductor Lab in Mohali is undergoing upgrades to enhance its capabilities, including increasing production capacity and incorporating new technologies such as Non-Volatile Memory (NVM) and Gallium Nitride (GaN) on silicon.
- Strategic Importance: Modernizing the lab is crucial for advancing India’s semiconductor ambitions and supporting significant projects like the Mars Orbiter Mission.
