- Two full-fledged multi-billion dollar fabs in the 65, 40 and 28-nanometer technology will be set-up in India
- There are also a range of other packaging units proposals, which will be approved before or after the general elections
Taking India’s semiconductor industry’s growth to the next level, the Minister of state for Electronics and IT Rajeev Chandrasekhar has now told the media that very soon India is going to witness two new semiconductor fabs besides numerous chips assembly and packaging units. According to the minister, the two new ventures include the $8 billion worth application filed by Israel’s Tower Semiconductor and from the home-grown Tata Group.
In an exclusive interaction with the PTI, the minister added that two full-fledged multi-billion dollar fabs in the 65, 40 and 28-nanometer technology will be set-up in India. There are also a range of other packaging units proposals, which will be approved either before or after the general elections. The minister told PTI, "I can safely tell you that the names that you mentioned have submitted these big, very credible, very significant investment proposals. There are other announced proposals by Tata as well in the fab. We see this happening in a very, very quick short term."
A couple of weeks back, the minister also told the media that the government has received 13 proposals for setting-up ATMP units, and four for setting-up chip fabs. These proposals are in addition to US based Micron’s Rs 22,516 Crore ATMP unit in Gujarat. The government is aiming to grab $55 billion in the semiconductor industry by the end of 2026 and $110 billion by 2030. The minister also highlighted how the previous government before 2014 neglected electronics and semiconductor manufacturing.
In 2012, US based Intel was willing to set-up its plant in the country, but as they found no support and assistance, the company moved out. As per the government data, the nation’s in-house electronics manufacturing augmented by over four-fold to Rs 8.22 Lakh Crore in the past ten years. According to the report of PTI, in FY 2013-14, electronics manufacturing was Rs 1,80,454 crore (USD 29.8 billion) and has grown significantly to Rs 8,22,350 crore (USD 102 billion) in FY 2022-23, which is further expected to grow up to Rs 23,95,195 crore (USD 300 billion) by 2026.
"India has played a big role in that shift in the last five years. India will play a big role in the coming five years to a decade. Electronics manufacturing, we were almost absent. To put it in the words of Tim Cook (Apple CEO). Three years ago there were no Apple phones being manufactured in India. We were importing 100 per cent of all mobile phones. Today we are exporting USD 10-12 billion of Apple and Samsung mobile phones," the minister added.
