Commerce Minister Piyush Goyal said India has potential, demand, credibility and friendship. (Twitter)
India and US signed Memorandum of Understanding to establish semiconductor supply chain at 5th India-US Trade Dialogue 2023, which can help India achieve its dream of becoming a hub of electronic goods
With three major US semiconductor companies announcing investments in India through the signing of Memoranda of Understanding (MoU) during Prime Minister Narendra Modi’s visit to the United States (US), Commerce Minister Piyush Goyal said that “India has reached the semiconductor scenario”.
India and the US have signed a Memorandum of Understanding to establish the semiconductor supply chain at the 5th India-US Trade Dialogue 2023, which can help India realize its long-held dream of becoming a hub of electronic goods, to achieve.
The Semiconductor Sub-Committee is part of the efforts of India and the US to increase private sector cooperation in semiconductors to reduce their dependence on China and Taiwan. It is led by the Department of Commerce for the US side and the Department of Electronics and Information Technology (MeitY) and the Department of Commerce and Industry for the Indian side.
The chip industry is highly concentrated, with Taiwan, the US and China as major players.
Micron Technology Inc, with support from the India Semiconductor mission, will invest more than $800 million in a new $2.75 billion semiconductor assembly and testing facility in India. Applied Materials will build a semiconductor commercialization and innovation center in India to further strengthen the diversification of the semiconductor supply chain. Lam Research will train 60,000 Indian engineers through its ‘Semiverse Solution’ to accelerate India’s semiconductor education and workforce development goals.
When asked when India can become a semiconductor manufacturing hub, Goyal, whose department heads the semiconductor subcommittee, said: “R&D, testbeds, packaging, innovation and testing will gradually have an end-to-end facility in India. Vedanta project, which is being implemented in Gujarat. My own engagement with these companies, the engagements of Minister Ashwini Vaishnaw when we met leaders from this industry have worked, now culminating in a significant result.”
China’s Cybersecurity Administration said in May that Micron failed its security scrutiny, denying operators of key domestic infrastructure the ability to buy the largest U.S. memory chipmaker products.
Goyal, when asked how he views China banning Micron and making India the next destination of choice for the company, said: “India has reached the semiconductor scenario. India will be a $100 billion market by 2030. We have potential, demand, credibility and friendship.”
Since 2020, there has been a major shortage of semiconductors worldwide, the end of which is not yet in sight. Since almost all modern devices and electronics require semiconductors, many industries struggle to meet strong consumer demand. Global companies are exploring India as a viable semiconductor investment destination. The country is positioning itself as one of the most attractive destinations in Asia for electronics and semiconductors.
The Indian semiconductor market was valued at $27.2 billion in 2021 and is expected to grow at a healthy CAGR of nearly 19 percent to $64 billion by 2023. But none of these chips are manufactured in India.
