Semiconductors (Indian market)

Main article: Economy of India

Global Chip Market

Main Article: Semiconductors (Global Market)

2024

$7.1 billion allocated for the development of the semiconductor industry

As of May 2024

Indian government approves $15.2 billion investment in semiconductor factories

In February 2024, the Indian government approved a $15.2 billion investment in semiconductor factories, including a proposal by the Tata Group to build the country's first large chip factory.

2023

How Russian microelectronics manufacturers enter the Indian market

At the end of May 2023, information appeared that Russian microelectronics manufacturers are considering several possible options for cooperation with companies and organizations in India. This is necessary in light of the current geopolitical situation: many foreign component suppliers and contract manufacturers have ceased cooperation with customers from the Russian Federation.

According to Kommersant the newspaper "," India attracts Russian developers for a number of reasons. In particular, it is one of the fastest-growing economies in the world. In addition, the territory and population of India potentially allow the deployment of large-scale production. In electronic engineers particular, as noted, Ministry of Digital Development of the Russian Federation the prospects for cooperation with India are associated with the joint development and creation of Russian-Indian companies that produce components and platform IT solutions.

Russian microelectronics manufacturers enter the Indian market

However, there are difficulties. According to market participants, now there are no semiconductor industries in India, and it will take a lot of time and money to create them from scratch. Therefore, one of the most promising options for cooperation may be the partnership of Russian and Indian design centers. We are talking about the joint development of certain types of electronics, for example, electricity metering devices. Market participants note that in India there are practically no design centers for microelectronics that develop their own solutions. In Russia, on the contrary, significant experience has been accumulated in the design of such products, but the country needs production facilities that could be located in Indian territory.

In addition to electronics developers, Russian software suppliers are eyeing the Indian market. Private and public customers in India are most interested in solutions to ensure technological and information independence. Therefore, the export of Russian software to this country looks attractive in terms of product promotion.^[1]

Roadmap for "Sustainable Electronics Manufacturing and Exports Worth $300 Billion by 2026"

As part of a roadmap to "sustainably produce and export $300 billion worth of electronics by 2026^[2] of February 2023, the expert community, together with representatives of the business community, invited the Indian leadership to take the following measures to support the industry: reducing the cost of doing business; active provision of incentives related to production; reduction of import tariffs; encouraging foreign producers to create an ecosystem of components in the country; clarification of FDI legislation, accelerated development of R&D; Infrastructure support for independent production clusters simplifying the issuance of permits and applications in the field of AI. Comprehensive implementation of the recommendations should help India qualitatively expand its presence in the global chip market. [1]Learn more here.

2022

India to invest $30 billion in chip manufacturing

In mid-June 2022, it became known that the Indian authorities would invest $30 billion in modernizing the country's technological sector and creating a semiconductor supply chain. With this investment, India expects to reduce its reliance on foreign chipmakers.

India is set to partner with titans such as Foxconn and Pegatron, which plan to expand beyond China. It plans to increase local production of goods such as chips, displays and advanced chemicals, as well as batteries, electronics, network and telecommunications equipment.

India to invest $30 billion in chip manufacturing

In addition to semiconductors, India intends to develop the production of displays, advanced chemical products, network and telecommunications equipment, as well as batteries and electronics. About $10 billion will be directed to the construction of two plants for the production of semiconductors and displays, $7 billion for the development of microelectronics production, and the remaining $13 billion for auxiliary services.

It is noteworthy that they do not plan to produce the most advanced chips in the country. They decided to bet on less advanced semiconductors, which are especially in demand on the global market. In India, manufactured chipsets may be less modern, which contradicts the goals of the United States and the European Union (EU), which seek to produce the most modern chips. The products can therefore be much less advanced and based mainly on a 65nm and 28nm process. The most typical uses of this manufacturing know-how may be connectivity chips, monitor drivers, controller chips for digital goods and electric vehicles.

The plans of the Indian government were shared in an interview with Nikkei Asian by the head of the country's diplomatic mission in Taiwan, Gurangalal Das. According to him, with the current growth in demand for semiconductor products, India by 2030 will consume components worth $110 billion per year, which corresponds to more than 10% of the projected global demand. The state does not intend to remain hostage to foreign suppliers forever, and therefore is ready to develop local production.^[3]

India launches state program for the development of open source processors RISC-V

The Government of India has set a date for the start of commercial production of domestic microprocessors by December 2023. Union Minister of State for Electronics and Information Technology Rajeev Chandrashekhar made the announcement on April 27, 2022 during the launch of Digital India's RISC-V microprocessor programme. Read more here.

In May 2022 Government of India , it announced the launch of a roadmap for the design and production of semiconductors on an architecture RISC-V that is positioned as basic for COMPUTER the reduced command set (RISC), has a modular design and is distributed free of charge to licenses with an open one, unlike the source code more famous architecture. ARM

2021: India approves $10 billion strategy to attract chipmakers to the country

On December 16, 2021 India , it approved a $10 billion economic stimulus plan to attract semiconductor and display manufacturers as part of a deepening drive to turn the country into a global center for electronics production.

Under the plan, the Indian government will provide financial support of up to 50% of the project cost to relevant display and semiconductor manufacturers, India's technology minister said in a statement.

India approves $10 billion strategy to attract chipmakers to the country

Israel's Tower Semiconductor, Taiwan and Foxconn a consortium Singapore of the have expressed interest in setting up chip factories in India, while Vedanta Group has sought to build a display factory, government sources said.

The program will usher in a new era in electronics manufacturing by providing a globally competitive stimulus package to companies in semiconductor and display manufacturing and design, the government said in a statement.

This is because some companies are looking to diversify their manufacturing bases outside China due to the ongoing trade war between Washington and Beijing, a program that is an indication that India is trying to gain a larger share of the global electronics manufacturing market.

India's plan to boost semiconductor production is also underway at a time when automakers and tech companies around the world are facing a global chip shortage.

New Delhi also approved a motivation plan to support 100 local firms working on integrated circuits and chipsets.

Technology Minister Ashwini Vaishnau told a briefing that the plan would help develop a "complete semiconductor ecosystem - from developing semiconductor chips to making, packaging and testing them in the country."

The government said it expects this to create about 35,000 highly qualified positions, 100,000 additional jobs and attract investment worth 1.67 trillion rupees ($8.8 billion).

Prime Minister Narendra Modi's government has offered about $30 billion in incentives to persuade some of the world's largest electronics manufacturers to open production in India and give a boost to domestic industry.

The government's plan will help attract advanced technology to India, boost jobs and boost investment, said A. Gururaj, managing director of Indian contract manufacturer Optiemus Electronics. - It will also help reduce imports of expensive technology.[4]

2020: India allocates $6.7 billion for electronics manufacturing projects in the country

On June 2, 2020, the Indian government announced the allocation of $6.65 billion in financial support to enterprises that will open their production sites in the country or expand capacity in this state if available. The announcement was made by Ravi Shankar Prasad, a member of the Indian government responsible for the technology industry.

Initially, the authorities plan to offer participation in the program to five world manufacturers, smartphones but it is not yet known which ones. The corresponding announcement is planned to be made within two months - that is, by the end of July 2020.

The amount of allocations will depend on the volume of production. Moreover, program participants will have to invest in the Indian economy for several years in a row in order to receive support.

In addition to this, the authorities will choose five local companies, which will also be allocated financial assistance. We are also talking about electronics manufacturers.

The plan also includes initiatives to increase the production of electronic components and build production clusters that will be offered to foreign companies for common use. Clusters will be hangars in which vendors will be able to accommodate production equipment.

With the help of a new program, Indian authorities expect to attract more contract electronics manufacturers to the country as more companies look for production sites outside China, where the coronavirus pandemic has disrupted global supply chains.

Global players like Samsung and Taiwanese firms Foxconn and Wistron, which make devices for Apple, have already built up their manufacturing capacity in India, which, like China, is also attractive to cheap labor.^[5]

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