India’s Semiconductor Drive Gains Momentum as Foxconn Takes Center Stage; Emphasis on Self-Sufficiency
Foxconn’s potential market entry is poised for the country’s ambitious semiconductor and display manufacturing ecosystem. Synergia brings with it the government’s amended semiconductor and display manufacturing development program, which is central, as stated in the 52nd report of the Standing Committee on Communications and Information Technology.
The revised Semiconductor and Display Manufacturing Development Program mentioned in the report seeks to elevate India’s position as a global electronic systems design and manufacturing center in line with the principles of Aatmanirbhar Bharat. In particular, this report recognized the proposals under consideration for setting up a semiconductor factory and a semiconductor packaging facility, marking a pivotal phase in India’s semiconductor aspirations.
Responding to questions from Parliament, Rajeev Chandrasekhar, MoS for Electronics and Information Technology, confirmed that Foxconn has submitted its application to set up Semiconductor Fabs units in India under the Modified Scheme.
Imports and self-sufficiency
During the parliamentary debates, Union Minister for Electronics and IT Ashwini Vaishnaw highlighted that the Semicon India programme, which is supported by a funding of Rs 76,000 crore, includes various programs aimed at strengthening the semiconductor and display manufacturing ecosystems in the country.
Meanwhile, in response to parliamentary questions, Minister Chandrasekhar admitted the country’s dependence on imports of semiconductor chips. However, he highlighted the government’s multi-pronged approach to address this concern and emphasized India’s need to strengthen its domestic semiconductor manufacturing capacity. The minister reiterated the importance of initiatives such as Production Linked Incentive (PLI) schemes aimed at reducing dependence on chip imports and the Semicon India programme.
Chandrasekhar also stated, “Construction of the first semiconductor unit of the Semicon India program has started in Sanand, Gujarat. A major semiconductor company has started its largest semiconductor design center in Bengaluru. Another major semiconductor company has partnered with the Indian Institute of Science to train a large number of engineers familiar with semiconductor technology.
Notably, US chipmaker Micron Technology’s over $2 billion ATMP plant is currently under construction in Gujarat. Second, AMD, the US-based semiconductor engineering major, has opened its largest global engineering unit in Bengaluru. The campus is known as AMD Technostar. Additionally, Lam Research and the Indian Institute of Science have decided to start an initiative to train semiconductor engineers.
