India steps up semiconductor push, seeks to turn ‘Make in India’ into ‘Engineer in India’

New Delhi: India is stepping up efforts to build a domestic semiconductor industry as it seeks to reduce dependence on imports and establish itself as a major global hub for chip manufacturing, design and related technologies, a report has said.

The country has launched the second phase of its semiconductor mission with a budget of around $13 billion, expanding the focus beyond basic industrial infrastructure to cover the wider semiconductor supply chain.

The programme also places greater emphasis on developing the skilled workforce needed to support the industry, according to a report by This Week in Asia.

Semiconductors are critical components that power a wide range of products, from automobiles and smartphones to artificial intelligence systems and advanced computing equipment.

India’s push to develop domestic capabilities comes as global supply disruptions during the Covid-19 pandemic highlighted the risks of depending heavily on a limited number of manufacturing hubs in East Asia, the report said.

While the government is seeking to promote domestic chip manufacturing, industry observers believe India could gain an even greater advantage by moving further upstream into semiconductor design and engineering. The country’s large pool of engineers and technology professionals is being viewed as a key strength that could help transform the ambition of “Make in India” into “Engineer in India”.

India has so far approved 12 semiconductor manufacturing projects across six states. Three companies — Micron, Kaynes Semicon and CG Semi — have begun commercial production this year, with their operations largely focused on assembly, testing and packaging rather than advanced wafer fabrication.

A major project involving Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Corporation in Dholera, Gujarat, is also progressing, with the facility targeting its first batch of chips in December. The project is expected to strengthen India’s capabilities in semiconductor manufacturing and contribute to the development of a broader domestic ecosystem.

Tata Electronics has also entered into an $11 billion memorandum of understanding with Dutch technology major ASML to collaborate on advanced semiconductor technologies. The partnership, signed on May 16, is aimed at supporting chip requirements across industries including automobiles and artificial intelligence, the report noted.

IANS