India Expands Semiconductor Ambitions with $13 Billion Second Phase
New Delhi aims to transition from 'Make in India' to 'Engineer in India' by focusing on the full semiconductor value chain.
Quick Look
- India has launched the second phase of its semiconductor mission with a $13 billion budget, aiming to build an end-to-end industrial ecosystem.
- The initiative focuses on workforce development and supply chain integration, building on 12 already approved projects.
AI-generated summary
Why It Matters
The initiative follows global chip shortages during the Covid-19 pandemic that highlighted vulnerabilities in supply chains.
But observers say the country should set its sights even higher upstream on the value chain by mobilising its “secret weapon” – a talent pool that could realise its dream to turn “Make in India” into “Engineer in India”.
New Delhi earlier this week launched the second phase of its mission with a budget of US$13 billion to build an industrial ecosystem spanning chip design to manufacturing. Building on the first phase, which focused heavily on foundational industrial set-up, the second expands support across the entire supply chain, including developing a large manpower pool.
The move on Monday comes as other countries in the region, such as Japan and Singapore, outline multibillion-dollar development plans for their semiconductor industries following chip shortages during the Covid-19 pandemic that exposed dependency on a handful of East Asian manufacturers.
Delhi has already approved 12 semiconductor manufacturing projects across six states. Three – Micron, Keynes Semicon and CG Semi – have started commercial production this year. They primarily handle assembly, testing and packaging rather than advanced wafer fabrication.
Open Questions
- How will the workforce training be implemented?
- What is the timeline for advanced wafer fabrication?
