The presence of major chipmakers at the conference indicates that India is becoming an attractive destination for semiconductor companies. It shows that the Indian government's efforts to promote the semiconductor industry and create a conducive business environment are gaining traction

PM Modi Launches Semicon India 2023 | Impact of Chipmakers’ Attendance on India

Adarsh V.KJuly 28, 23 Ashwini Vaishnaw, Foxconn, Gujarat

Prime Minister Narendra Modi announced on Friday that India is warmly welcoming the semiconductor industry, as he inaugurated the Semicon India conference’s 2023 edition at Mahatma Mandir in Gandhinagar, Gujarat.

“The first edition of this summit discussed why companies should invest in the semiconductor sector in India, but now the question has changed – why not invest,” PM Modi said. He added, “India knows that semiconductor is not only about our need but the world also needs a reliable and trustworthy supply chain supplier who is a better partner than the world’s largest democracy.”

The inauguration ceremony was attended by Union Electronics and IT Minister Ashwini Vaishnaw along with External Affairs Minister Rajeev Chandrasekhar and Gujarat Chief Minister Bhupendra Patel and heads of major companies like SEMI, AMD, Applied Materials, Cadence, Vedanta Group. Micron Technology and Foxconn.

The presence of top chipmakers such as Foxconn, AMD and Micron at the Semicon India conference could have significant implications for India at a time when the semiconductor sector is dominated by Taiwan and China.

Impact

The presence of these major chip makers at the conference shows that India is becoming an attractive destination for semiconductor companies. It shows that the Indian government’s efforts to promote the semiconductor industry and create a favorable business environment are gaining traction. This could potentially attract more investments and collaborations that bring advanced technology and expertise to strengthen India’s semiconductor capabilities.

Taiwan is home to TSMC, the world’s largest contract chipmaker, and China is investing heavily in the semiconductor industry. However, geopolitical tensions or supply chain disruptions in these regions may affect the availability of semiconductor components in other parts of the world. India’s efforts to build a semiconductor industry and attract major players can help reduce its dependence on these areas and ensure a more diversified and sustainable supply chain.

India has been working to improve its domestic semiconductor manufacturing capability to support the electronics and technology sectors. The involvement of these chipmakers could lead to the establishment of semiconductor manufacturing facilities in India or increased collaboration with local manufacturers. This would not only strengthen India’s position in the semiconductor market but also create employment opportunities and boost the country’s economic growth.

Industry experts strongly believe that cooperation with established chip manufacturers can accelerate technological development in India. By gaining access to cutting-edge technology, R&D, India can improve its semiconductor ecosystem and become more competitive in the global market. This could pave the way for the development of innovative products and solutions in various industries.

The conference can serve as a platform for information sharing and cooperation. It can facilitate partnerships between Indian research institutes and these chipmakers, leading to joint R&D initiatives and technology transfer. This exchange of information can help strengthen the Indian semiconductor industry and promote a culture of innovation.

All in all, the participation of major chip manufacturers in the Semicon India conference represents a positive development for the Indian semiconductor sector. It shows growing interest in India as a potential center for semiconductor manufacturing, research and development.

Where are we now?

The US and Japan have already signed a memorandum of understanding with India to develop a semiconductor ecosystem in the country. Micron Technology, Applied Materials and Lam Research have already announced plans to strengthen the ecosystem.

Vedanta and Foxconn may have ended their agreement, but Vedanta is committed to continuing to set up its unit in India, while Foxconn is in talks with TSMC and Japan’s TMH Group for technology and joint venture partnerships to set up a semiconductor manufacturing unit in India.

While there is no confirmation of the Vedanta and Foxconn projects, Micron Technology is set to lead the way as it has already confirmed to build a semiconductor assembly and memory chip testing facility in Gujarat.