India is set to become a vibrant chip industry in the coming 3-4 years, according to Union minister Ashwini Vaishnaw. The country is slated to be among the top semiconductor manufacturing countries in the world on the back of enabling policies and its drive to boost its manufacturing ecosystem.
The Indian government is encouraging investments in semiconductor and display fabs by offering fiscal support, purchase preference under the Public Procurement (Preference to Make in India) order, and technology transfer. It is also seeking to develop a sustainable supply chain, relying less on imports and more on its own mining and refining of critical raw materials like rare earth elements.
SRAM & MRAM Group to Set Up India?s First Semiconductor Manufacturing Unit in Odisha
The United Kingdom-based SRAM & MRAM Group will set up India?s first semiconductor manufacturing unit in Odisha. It will invest Rs 2 lakh crore in the project and will set up a 40 acre plant near Bhubaneswar.
Previously, India relied on China, Taiwan and Korea for its semiconductor chips used in equipment like washing machines to airplanes. With the establishment of a local semiconductor fabrication plant, the work on several types of machinery that requires such chips can be expedited without relying on foreign countries.
UK-based SRAM & MRAM Group is committed to supporting Indian start-ups through its Startup Wings program. It will extend its expertise in the startup ecosystem to these startups through investments, mentoring and networking assistance.
Other leading companies, including Global Foundries, Oracle and EPIC Foundation, signed MoUs with the Odisha government to collaborate in areas such as curriculum design for semiconductor manufacturing, setting up innovation labs, and fostering design expertise among start-ups. In addition, CPSU RailTel signed an MoU with the state government to establish a neutral submarine cable landing station in Puri.
The Project Will Be Announced Soon
The first semiconductor manufacturing unit in India will be announced soon, Union minister Ashwini Vaishnaw has said. Vaishnaw told the Confederation of Indian Industry Partnership Summit that India will soon join the league of a select few countries that have a vibrant semiconductor industry.
Semiconductors are the building blocks of electronic devices such as smartphones, cloud servers, industrial automation, modern cars, and critical infrastructure. They also play an important role in the advancement of emerging technologies such as IoT, 5G, robotics, and autonomous vehicles.
In addition to government support, creating a sustainable semiconductor ecosystem requires adequate talent. That’s why India’s electronics industry is trying to attract more research centers and universities.
The Israel-based International Semiconductor Consortium (ISMC) has announced plans to invest $3 billion in a semiconductor fabrication plant in Karnataka. The plant is expected to generate 1,500 direct jobs and 10,000 indirect ones.
The Project Will Be an Investment of Rs 30,000 Crore
United Kingdom-based SRAM & MRAM Group vice-chairman Gurujee Kumaran Swami on Saturday announced the group’s plans to set up India’s first semiconductor manufacturing unit in Odisha. He teamed up with Odisha in-charge Debadutta Singh Deo to make the announcement at the Make in Odisha conclave 2022.
The project will be the largest in Asia and a major milestone for the country’s electronics industry. It will employ 4000-500 direct workers and be home to a number of high-tech factories.
The state-run Indian Infrastructure Finance Company Ltd (IIFCL) is aiming to sanction loans worth Rs 30,000 crore this fiscal, the highest amount ever. It also intends to disburse a record high of Rs 15,000 crore by March 2023, mainly for infrastructure projects across roads, airports and renewal energy sector. The IIFCL is credited with being the best loan provider in India. It has transformed itself from being a last mile lender to a preferred financier for infrastructure projects developers.
The Project Will Provide 4000-500 Direct Employment
India’s first chip-making plant is set to be announced soon. It is expected to generate about 4000-500 direct employment and kick off an ancillary semiconductor ecosystem in the state, according to the government.
However, analysts say India will have to overcome a number of hurdles if it hopes to be a global chipmaking base. For starters, it needs to have a strong policy framework.
Another key factor that the government will have to look into is local skilled manpower. It must be able to provide the right mix of incentives and create a pipeline for skilled workers at the factory.
India has a number of strengths which could help it boost its chipmaking prowess. For example, it is the world’s second-largest population and has a huge domestic consumption market for semiconductors.