Boosting Semiconductor Manufacturing in India: A Game-Changing Move.
Prime Minister Narendra Modi's Efforts to Attract Global Tech Giants
Prime Minister Narendra Modi is spearheading a significant push to bolster semiconductor manufacturing in India, attracting the attention of global tech giants. During a recent meeting with Gary E. Dickerson, the President and CEO of Applied Materials, Modi discussed the immense potential of collaborating with academic institutions in India to create a highly skilled workforce. This collaboration holds the key to unlocking India's prowess in the semiconductor industry and fortifying its position as a global tech hub.
Micron Technology: Powering India's Semiconductor Manufacturing
In an effort to further enhance semiconductor manufacturing capabilities, Prime Minister Modi extended an invitation to American chip maker Micron Technology. Recognizing India's competitive advantages across various segments of the semiconductor supply chain, Modi emphasized the country's suitability for Micron Technology's operations. This strategic partnership promises to elevate India's semiconductor landscape and pave the way for cutting-edge advancements.
Applied Materials: Revolutionizing Process Technology in India
Modi also extended a warm invitation to Applied Materials, urging them to bring their expertise to India for the development of process technology and advanced packaging capabilities. Recognized as a leader in the semiconductor equipment industry, Applied Materials has the potential to transform India's semiconductor manufacturing ecosystem. Collaborating with this industry giant will provide India with invaluable knowledge and resources, enabling the country to achieve new milestones in the field.
General Electric: Driving Innovation in Aviation and Renewable Energy
During his meeting with H. Lawrence Culp, the CEO of General Electric (GE), Prime Minister Modi expressed his appreciation for GE's long-term commitment to manufacturing in India. Modi urged GE to play a more substantial role in the aviation and renewable energy sectors within the country. The prime minister and Mr. Culp Jr. discussed the possibilities of technology collaboration to promote manufacturing in India. This partnership signifies India's determination to leverage GE's expertise and drive innovation in crucial sectors.
India's Semiconductor Market Potential
India has proactively undertaken initiatives to foster semiconductor development within its borders. The government has recently introduced a production-linked incentive (PLI) scheme to attract global companies to invest in the semiconductor industry. As a result, India has emerged as a highly attractive destination for electronics and semiconductors in Asia. Although the Indian semiconductor market was valued at USD 27.2 billion in 2021, with an expected CAGR of nearly 19 percent, it does not yet manufacture any chips domestically.
Overcoming Challenges: Setting up Semiconductor Units
Establishing semiconductor units, commonly referred to as fabs, is a complex and costly endeavor. These units require highly specialized technology and involve substantial risks, long gestation periods, and extended payback timelines. However, India's commitment to nurturing the semiconductor industry and attracting global players demonstrates its determination to overcome these challenges. With strategic partnerships and favorable policies, India aims to become a prominent player in semiconductor manufacturing.
Prime Minister Modi's Visit to the United States
Prime Minister Modi's visit to the United States comes at the invitation of President Biden and First Lady Jill Biden. This visit follows Modi's participation in a historic event at the UN Headquarters, commemorating the 9th International Day of Yoga. Modi's diplomatic efforts highlight India's commitment to global partnerships and its pursuit of technological advancement.