Semiconductors are an essential component of electronic devices that is used across industries including technology, healthcare, defense, transportation, etc.
India’s first semiconductor fabrication is slated for an announcement in a few weeks, the country’s IT Minister Ashwini Vaishnav said on Tuesday and as reported by the Press Trust of India. Asia’s third-largest economy is poised for a vibrant chip industry in the next three-to-four years, he added.
Speaking at a session at CII Partnership Summit 2023, the Union Minister said that the government has been actively engaging with all stakeholders as it is focused on creating and fostering the chip industry. The Indian government is “committed to do what’s required to succeed”, he added.
The Minister noted that India stands at the number two position when it comes to manufacturing mobile phones and number three in its exports. In 2023, exports of mobile phones are expected to touch $9.5 billion to $10 billion.
On the other hand, major incentives have been taken by the central government to spur supply. These include a sharp focus on promoting the ecosystem and ensuring a clearly laid out policy framework that is stable and consistent, the minister said.
Meanwhile, last month, the Indian Electronics and Semiconductor Association (IESA) and the US Semiconductor Industry Association (SIA) announced to come together to develop a private-sector task force to boost collaboration between countries in the global semiconductor industry.
India has also joined the US and China to build a vibrant semiconductor and display ecosystem to enable the country’s emergence as a global hub for electronics manufacturing and design. In 2021, India also launched the Production Linked Incentive (PLI) scheme to make India the chip hub.