Semiconductor chip manufacturing to make India global semicon hub: PM Modi

Semicon business push: Prime Minister Narendra Modi on Wednesday said that the semiconductor business lies at the core of the digital transformation India is witnessing, and holds the potential to help the country become a global semiconductor hub. The PM was making a virtual address, for the semiconductor facilities set-up in Gujarat, Odisha, and Assam at the cost of Rs 1.25 lakh crore. PM Modi said chip-making facilities are a step towards strengthening ‘Make in India’ and the objective to make India 'Aatmanirbhar'.  

Prime Minister Narendra Modi was participating in 'India's Techade: Chips for Viksit Bharat' and virtually laid the foundation stones of three semiconductor projects.

“Today's day is historic and we are scripting a story for a bright future," said Modi. “The foundation stones of three semiconductor projects worth Rs 1.25 lakh crore in Odisha, Gujarat and Assam are remarkable in India's semiconductor industry's history,” said Modi. The PM said India was making all possible efforts to ramp up the supply chain in the semiconductor business, adding that the outbreak of COVID-19 had made the world realise the importance of the semiconductor industry.  

Chip making and Industry 4.0

PM Modi highlighted that the 21st century has taken the shape of a digital age and India cannot foresee a technological future without fully embracing the digital framework. The chip-making will help India in stepping into Industry 4.0 and ensure that ‘Make in India’ and ‘Aatmanirbharta’ objectives. 

“India commits, India delivers and democracy delivers. This core idea is driving our growth in semiconductor manufacturing and gradually becoming a hub. A selected countries in the world are making semiconductor chips, and it is an apt occasion for India to step up,” said Modi. He said a number of representatives from the Taiwan government were a part of the 'India's Techade: Chips for Viksit Bharat' event. 

India will soon start semiconductor production and that day is not far when we become the global leader in having maximum semiconductor projects, said PM Modi. 

"During the last few years, our government has done away with 40,000 formalities and processes for the ease of doing business. FDI has been opened up in defence, telecom and now even hardware manufacturing and electronics in India are witnessing several government incentives being offered. India is the second largest mobile phone manufacturer which was started with the National Quantum Mission, and we even have the National Innovation Foundation to foster scientific temper and innovative thinking among school children and youth. We are not just embracing technology but following a path of technology advancement," said Modi. 

Youth at forefront of semicon 

Modi said youth will benefit from semiconductor manufacturing, adding that cheap manufacturing will help create a large number of jobs. “ Not just in India but semiconductor making will boost the design, research, and development globally and India's youth are leading it," said Modi. 

"The brain behind semiconductor development globally is that of India's young tech-driven professionals,” said PM Modi. The PM said incentives provided to startups have helped the country become the third-largest startup ecosystem globally. 

“I am hopeful that technological advancement will help to provide opportunities to youth. The day is not far when we are among the top three leaders in the semiconductor business,” said PM Modi. 

“India lost many decades in the semiconductor business and now we cannot afford to lose any more time. In the 1960s India dreamt of becoming a semiconductor hub but successive governments due to lack of will and a vision to take long-term decisions for the country, did no good to fulfill the dream of India becoming a global semiconductor hub,” said Modi.  

Taking a dig at previous ruling governments in the centre, PM Modi said they indulged in major scams but never allocated enough funds for the semiconductor industry. 

“India is spending lakhs of crores of rupees for an equal focus on social schemes and poverty alleviation, while also ensuring Rs 12 lakh crore funds have been earmarked for various schemes during the present year alone. Just two days back, with Agni-5, India made a giant leap and the Namo Drone Didi initiative launched recently is empowering women in our country. The ‘Made in India’ nuclear reactor and other such projects will help India move towards ‘Viksit Bharat’,” the PM further added. 

“The three semiconductor project launches are also a step towards ‘Viskit’ Bharat. The way AI has brought a revolution exemplifies the power of youth and their zest. The AI initiative is a huge opportunity for the youth of our country,” said PM Modi. 

Semicon for national security 

Tata Sons chairman N Chandrasekaran, while addressing the event, said self-sufficiency in semiconductor manufacturing was a must-have for national security. “We will deploy our deep customer insights. We have been fortunate to pioneer and our journey to make semicon chips has begun,” he said, adding that from medical devices to hardware devices, the semiconductor business plays a key role. 

Assam Chief Minister Himanta Biswa Sarma said PM Modi's support to northeast was immense.  Gujarat Chief Minister Bhupendrabhai Patel said mobility and infrastructure segments were being supported by chip-making business. 

Earlier a statement issued by  Tata Electronics Private Limited (TEPL) said, "It has been the vision of the Prime Minister to position India as a global hub for semiconductor design, manufacturing, and technology development, fostering the creation of employment opportunities for the nation's youth. In line with this vision, the foundation stone is being laid for the semiconductor fabrication facility at the Dholera Special Investment Region (DSIR) in Gujarat, the Outsourced Semiconductor Assembly and Test (OSAT) facility in Assam's Morigaon, and the Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand in Gujarat," said a company statement.

The fabrication (fab) facility at the DSIR will be set up by Tata Electronics Private Limited under the Modified Scheme for setting up Semiconductor Fabs in India. With a total investment of over Rs 91,000 crore, this will be the first commercial semiconductor fab in the country.

Later in the day, the PM will be addressing entrepreneurs and marginalised scheme beneficiaries of social schemes at 4 pm.