In a significant step towards India’s self-reliance in the semiconductor industry, Micron Technology Inc, a prominent US semiconductor company, is gearing up to construct a chip assembly facility in the country. The Indian government, under the ambitious $10-billion India Semicon incentive plan, has approved 50% financial support for the overall project cost, with an additional 20% incentives provided by the Gujarat government.
The collaboration between India and the United States in this venture was solidified during Prime Minister Narendra Modi’s recent visit to Washington. Micron Technology announced its plans to establish a semiconductor testing and assembly facility worth $2.75 billion during this visit.
According to a Financial Times report, Micron Technology will spearhead this massive project in Gujarat, receiving support from the Indian government. The initiative, known as the India Semiconductor Mission, is aimed at garnering support from various partners in the supply chain, including chemical, gas, and manufacturing equipment suppliers, as well as companies interested in setting up silicon wafer fabrication plants.
Ashwini Vaishnaw, the Indian Minister for Electronics and Information Technology, expressed that this endeavor represents a new industry for India. With an ambitious timeline of just 18 months, the objective is to have the factory operational by December 2024.
The establishment of the first semiconductor chip manufacturing unit in India marks a significant milestone for the nation, bolstering its efforts towards self-sufficiency in the crucial field of microchip production. This development is expected to enhance India’s technological prowess and contribute to the country’s overall economic growth.
India’s Semiconductor Market:
India’s semiconductor market is expected to experience robust growth, with a projected Compound Annual Growth Rate of 24.32% by 2029. Factors driving this growth include increasing consumer demand for electronic products and government initiatives to promote electronic manufacturing.
The Indian government has introduced a USD 9.43 billion incentive program for semiconductor fabrication and design, with up to 50% government co-funding. Additional schemes worth around USD 10 billion have been approved to encourage semiconductor and display manufacturing. The establishment of electronic parks and clusters in certain states aims to attract investment and industry players.
Notable developments include a joint venture between Vedanta and Foxconn and the Micron factory plan in Gujarat. Collaborations between academic institutions and industry giants, such as the Indian Institute of Technology (BHU) and Applied Materials, focus on semiconductor research.
The India Semiconductor Market is segmented based on components, applications, types, and regions. Key players include Broadcom India Private Limited, Chiplogic Semiconductor Services Private Limited, Tata Elxsi Limited, NXP Semiconductors India Private Limited, and STMicroelectronics Private Limited.
This growth in the semiconductor market is expected to contribute to India’s technological advancements and economic growth in the coming years.
Related:
- China Imposes Export Controls on Critical Semiconductor Materials, Escalating Trade War
- Indian Government May Deny Funding for Billion-Dollar Vedanta-Foxconn Semiconductor Venture
- China Opposes Dutch Restrictions on Semiconductor Equipment Exports
