Chip fillip
INDIA’S ambition to become a global hub of semiconductor design, manufacturing and technology development is no longer a mere pipe dream, thanks to its collaboration with fellow Quad members Japan, the US and Australia. During the just-concluded SemiconIndia Conference 2023, held in Gujarat’s Gandhinagar, India showcased the rapid strides it is making in the field of semiconductors. External Affairs Minister S Jaishankar and Minister of State for Electronics and Information Technology Rajeev Chandrasekhar have made India’s semiconductor mission seem serious business aimed creating a credible platform for ‘trusted manufacturing’.
New Delhi’s focus is on attracting investments to bolster the country’s nascent semiconductor ecosystem. Among the American companies, Micron Technology pledged in June to invest up to $825 million to build a new semiconductor assembly and test facility in India with the support of the Indian government; Applied Materials has committed to invest $400 million to set up a collaborative engineering centre in India; and Lam Research has promised to train 60,000 Indian engineers to accelerate India’s semiconductor education and workforce development goals. An India-Japan pact on the semiconductor supply chain was finalised recently, while India and Australia are working on lithium and cobalt projects under the Critical Minerals Investment Partnership.
India’s semiconductor hopes had taken a hit last month when Taiwanese major Foxconn pulled out of a $19.5-billion joint venture with Indian mining conglomerate Vedanta. The fiasco underlined the vital importance of compatibility and synergy between partners for the success of big-ticket projects. The government has to act as a proactive enabler and facilitator; the $10-billion fiscal incentives being offered by it to units setting up chip-making factories in the country can prove to be a game-changer, provided that ease of doing business is prioritised. Achieving the twin goals of Make in India and Make for the World needs sustained cooperation between various stakeholders. Half the battle will be won if India is able to reduce its dependence on Taiwan and China for expensive imports.
