Startup Originals Team
Union Minister Ashwini Vaishnaw recently declared that semiconductors will power India’s next wave of employment and industrial growth, much like steel did in the previous century. In a conversation with leading media figures, he emphasized how building a solid chip manufacturing foundation can spark transformative growth across the economy.
Why Semiconductors Are a Game-Changer:
Vaishnaw highlighted that steel was the backbone of 20th-century industrial expansion – fueling vehicle production, construction, and infrastructure. In a similar way, semiconductors now underpin nearly all modern manufacturing, from TVs and refrigerators to electric vehicles and high-end electronics.
He explained:
“Practically every manufacturing sector today has an element of chips in its design and production processes. Establishing a strong semiconductor base in India will have a multiplier effect across the economy.”
Building the Ecosystem: India Semiconductor Mission (ISM)
Under the India Semiconductor Mission, India has approved 10 semiconductor projects worth around $18 billion, with five already under construction, including a facility in Assam.
The mission’s goal extends beyond chip fabrication, it aims to develop a full ecosystem comprising specialty chemicals, precision machinery, supportive talent pools, and training infrastructure.
India’s Semiconductor Milestones:
Several key developments underscore India’s progress:
- Pilot Chips Rolling Out: The first “Made in India” chip is expected soon from CG Semi’s pilot facility in Sanand, Gujarat.
- Joint Ventures & New Units: The HCL-Foxconn JV received approval to set up a Rs 3,706-crore facility near Jewar airport in Uttar Pradesh, the sixth plant under ISM.
- High-Tech Design Capability: India’s first 3 nm chip design centers, launched by Renesas in Noida and Bengaluru, mark a leap into advanced semiconductor technology.
Global Confidence and Local Talent:
Vaishnaw noted that international semiconductor leaders like ASML are increasing their engagement with India’s ecosystem, a strong vote of confidence in its potential.
India boasts over 20% of the global semiconductor design workforce, and rapid capacity building is underway to meet growing global demand.
Why This Matters Now:
Global reliance on a handful of chip-producing nations has exposed vulnerabilities. India aims to reduce supply chain disruptions and bolster its technological sovereignty by developing homegrown chip-making capabilities.
Additionally, policies supporting component manufacturing, like the recent ₹2.68 billion plan – are expected to generate nearly 92,000 direct jobs, further catalyzing job growth across electronics, telecoms, and automotive sectors.
Conclusion:
India’s journey to becoming a semiconductor powerhouse is now gathering speed. With a robust policy framework, skilled talent, global investments, and strategic infrastructure, the nation is poised to ignite a “chip-led” industrial revolution. As Vaishnaw suggests, chips may well become India’s most powerful economic engine yet.
