India aims to emerge as alternative to China with 3 major semiconductor projects

India is emerging as a promising alternative to China in the global chipmaking industry, hosting the Semicon exhibition for the first time. Prime Minister Narendra Modi has initiated three semiconductor projects worth Rs 1.25 lakh crore, aiming to make India a major semiconductor hub.

The projects are expected to generate significant employment opportunities, with TEPL's greenfield project creating jobs for over 30,000 people. India's emergence as a key player in the global semiconductor supply chain represents a strategic realignment of global supply chains and underscores India's potential as a global technology powerhouse.

As the global chipmaking industry navigates geopolitical tensions, India is emerging as a promising alternative to China. The international chip industry group SEMI is set to host its Semicon exhibition in India for the first time in September, a testament to India's growing importance in the semiconductor supply chain. The event will see participation from several Japanese companies, including Tokyo Electron, Disco, Canon, Tokyo Seimitsu, and Daifuku. Tokyo Electron will showcase equipment for wafer deposition, coating, and other front-end steps in the chipmaking process.

US-based companies such as Applied Materials, Lam Research, and KLA will also have large booths at the exhibition. This shift towards India is a result of recent geopolitical tensions that have led to a reconfiguration of international supply chains. Notably, Apple is relocating the production of iPhones and other products from China to India, a move that underscores the country's growing appeal as a manufacturing hub.

In March, Prime Minister Narendra Modi laid the foundation stone of three semiconductor projects worth Rs 1.25 lakh crore. These projects include a chip fabrication facility at the Dholera Special Investment Region (DSIR) in Gujarat, set up by Tata Electronics Private Limited (TEPL) with a total investment of more than Rs 91,000 crore. Another significant project is the Outsourced Semiconductor Assembly and Test (OSAT) facility in Morigaon, Assam, set up by TEPL for Semiconductor Assembly, Testing, Marking, and Packaging (ATMP), with a total investment of about Rs 27,000 crore.

Union Railways and IT Minister Ashwini Vaishnaw stated that India has commissioned four semiconductor manufacturing units and, in the next five years, the country will become one of the biggest semiconductor hubs in the world. This ambitious vision is supported by projections from Hong Kong-based Counterpoint Technology Market Research, which estimates that India's semiconductor-related market will reach $64 billion in 2026, nearly triple the size in 2019.

The Indian government's commitment to the semiconductor industry is further demonstrated by the presence of key figures at the foundation stone-laying ceremony. Union Minister Ashwini Vaishnaw, Minister of State (MoS) Rajeev Chandrasekhar, Ministry of Electronics and Information Technology(MeitY); Himanta Biswa Sarma, Chief Minister (CM) of Assam; Bhupendra Patel, CM of Gujarat; Vellayan Subbiah, Chairman of CG Power & Industrial Solutions Ltd.; and Natarajan Chandrasekaran, Chairman of Tata Sons were present on the occasion.

The semiconductor projects are expected to generate significant employment opportunities. The greenfield project of TEPL, for instance, is poised to create jobs for more than 30,000 people. This aligns with PM Modi's assertion that when India commits, it delivers, referring to his government's commitment to make the country a semiconductor manufacturing hub.

The semiconductor industry's growth in India is not just limited to large corporations. Two Karnataka-based semiconductor firms, Saankhya Labs, a subsidiary of Tejas Network, and Sensesemi Technologies, have been approved under the Design-Linked Incentive (DLI) Scheme. These firms are working on cutting-edge technologies, including Systems on Chip (SoC) for Internet of Medical Things (IoMT) and IoT devices, further bolstering India's position in the global semiconductor landscape.

 India's emergence as a promising alternative to China for chipmaking equipment firms is a significant development in the global semiconductor industry. With the government's strong commitment, strategic investments, and the country's growing appeal as a manufacturing hub, India is well on its way to becoming a major player in the global semiconductor supply chain. This shift not only represents a strategic realignment of global supply chains but also underscores India's potential as a global technology powerhouse.