India's Semiconductor Leap: Rs 3,300 Crore Unit Approved By PM Modi's Cabinet

 Union Cabinet, led by Prime Minister Narendra Modi, has sanctioned a proposal for the establishment of a semiconductor unit in Sanand, Gujarat. The project, a part of the India Semiconductor Mission (ISM), is to be undertaken by Kaynes Semicon Pvt Ltd with an investment of Rs 3,300 crore.The semiconductor unit is projected to manufacture nearly 60 lakh chips per day, catering to a broad spectrum of applications. These include industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones, among others.

This initiative is a testament to India's potential to develop a 'Made in India' chip for every piece of equipment, a vision articulated by PM Modi himself. The first indigenously-developed chip is anticipated to arrive in the country by the end of this year, marking a significant milestone in India's technological journey.

Earlier in March, PM Modi laid the foundation stone for three semiconductor projects worth Rs 1.25 lakh crore. These projects include Tata Electronics setting up a semiconductor fab in Dholera, Gujarat, and a semiconductor unit in Morigaon, Assam. Additionally, CG Power is establishing a semiconductor unit in Sanand. These units are expected to generate lakhs of direct and indirect jobs, contributing significantly to the country's employment sector.

The Ministry of Electronics and IT has reported that the construction of all four semiconductor units is progressing rapidly, leading to the emergence of a robust semiconductor ecosystem in the vicinity of the units. The four units are expected to bring in an investment of almost Rs 1.5 Lakh crore, with a cumulative capacity of about 7 crore chips per day. The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which was notified in 2021, has a total outlay of Rs 76,000 crore. This initiative is expected to foster employment opportunities for the youth of the country, according to an official statement.

Reports suggest that India's semiconductor-related market is projected to reach $64 billion in 2026, nearly tripling the size in 2019. Union Railways and IT Minister Ashwini Vaishnaw recently stated that in the next five years, the country will become one of the biggest semiconductor hubs in the world.

In his address to the nation, PM Modi outlined a series of futuristic goals aimed at shaping India's growth and achieving the target of Viksit Bharat by 2047. He assured the nation that the government is working on mission mode for the development of 6G networks.

India has significantly reduced its reliance on smartphone imports, now manufacturing 99 per cent domestically. This is driven by mobile phones with a 43% share in total electronics production. This move not only aligns with the vision of a self-reliant India but also promises to generate employment, boost the economy, and position India as a key player in the global semiconductor market. The decisions and policies of today will indeed give India a strategic advantage in the future, as the Prime Minister rightly pointed out in his virtual address during the foundation laying ceremony.