Semicon India: India To Accomplish In A Techade What China Did In 30 Years, Says Chandrasekhar

India’s ‘techade’ has arrived and the country is all set to accomplish in the next decade what neighbours like China achieved in 30 years, Minister of State for Electronics and Information Technology Rajeev Chandrasekhar said on Thursday (July 27).

Chandrasekhar was speaking at a press conference ahead of the start of Semicon India 2023, organised by the India Semiconductor Mission (ISM), tomorrow in Gandhinagar in Gujarat.

Techade is a term earlier used by Prime Minister Narendra Modi to describe a decade that will be dominated by technology.

Speaking about the achievements of the ISM, Chandrasekhar said semiconductor major Micron announcing its first-ever $2.75 Bn ATMP (assembly, testing, marking, and packaging) project in India at Gujarat is a big milestone in the country’s journey becoming a semiconductor manufacturing hub. The project is expected to create at least 5,000 direct and 15,000 community jobs.

On the policy framework required for the components, Chandrasekhar said, “The necessary policy framework is already in place to create a vibrant component ecosystem. And if there is any need for the government to intervene and create more PLI type of schemes, we will do so,”

Semicon India 2023 is a three-day event to catalyse a conducive environment for the semiconductor ecosystem in the country.

Chandrasekhar also announced that the semiconductor fab at Semi-Conductor Lab (SCL) Mohali will be modernised with the help of global majors. An amount of INR 10,000 Cr has been earmarked for it.

In December last year, the government approved the Semicon India programme, with an outlay of INR 76,000 Cr, to develop India’s semiconductor design and manufacturing ecosystem.

Under the SemiconIndia futureDESIGN, over 30 semiconductor design startups have been set up in India so far. Five startups have already received government financial support and another 25 Startups are being evaluated for their proposals for gennext products and devices.

Several proposals in ATMP and fabs are being evaluated by the ISM, including manufacturing 40nm CMOS fabs and multiple compound semicon ATMPs.

Besides, the Indian government also plans to set up a global standard India Semiconductor Research Centre. However, the location and timeline for its establishment haven’t been disclosed yet.

It is worth noting that under the ISM, the Indian government offers 50% of the project cost for setting up a semiconductor fab, display fab, compound semiconductor and semiconductor ATMP. Design-linked incentive (DLI) has also been enabled under the programme.

The government has set up an expenditure finance committee, led by the secretary of the Department of Expenditure, to determine the structure and quantum of fiscal support under the scheme for establishing the semiconductor fabs.

Earlier, Chandrasekhar, while speaking to Inc42 at a Semicon India event in Bengaluru, said that semiconductor design and manufacturing is a very complex area and highlighted that the space is not for everyone. However, he added that the semiconductor design and manufacturing ecosystem is developing in the country. It currently has a presence of about 21 startups (now 30), which is expected to grow to 50 by the end of 2023.

While Micron’s decision to set up an ATMP plant in Gujarat is seen as a big step, India’s semiconductor ambitions have also received some setbacks.

Earlier this month, Taiwanese semiconductor major Foxconn said it was withdrawing from a $19.5 Bn joint venture with Vedanta to manufacture semiconductors in India. Foxconn had 37% stake in the project.

However, Vedanta, having acquired the licence for production-grade technology for 40nm fabs, said Foxconn’s move won’t impact the project, which is expected to start generating revenue from 2027. Meanwhile, Foxconn also said it is committed to its plans for India.