India's plans for becoming a prominent player in the silicon industry received a significant boost with American chipmaker Micron Technology's decision to invest up to $825 million in a new assembly and test facility in Gujarat. This aligns well with both India's and the US's objectives. With support from the Central and state governments, the total investment in the facility is expected to reach $2.75 billion, complementing India's ambitious $10-billion incentive plan for chip manufacturing. For the US, Micron's move is in line with its strategy to mitigate risks associated with conducting business in China while forging stronger economic ties with India. Recently, Beijing barred Micron products, citing security concerns, which sparked displeasure within the Biden administration.
Construction of the new facility is slated to commence soon, and the initial phase is expected to be operational by late 2024. While the facility will focus on testing and packaging semiconductor chips rather than manufacturing them, Micron's investment serves as a catalyst in India's vision to establish itself as a semiconductor hub. In addition to Micron, US semiconductor toolmaker Applied Materials also plans to invest $400 million in a new engineering center, while Lam Research intends to train 60,000 engineers. Traditionally, India has primarily focused on software-related expertise, yielding notable achievements in various digital technologies. However, cracking the hardware puzzle presents a distinct challenge. Relocating chip supply chains cannot be achieved solely through subsidies. The key lies in fostering larger clusters that can support manufacturing, sustain long-term operations, and facilitate the transfer of technology.
The global chip market is projected to reach $1 trillion by 2030, but it is already grappling with a shortage of highly skilled workers. As India embarks on its silicon journey, there will be a surge in job openings in the semiconductor industry. India, with its vast talent pool, must capitalize on this opportunity and devise effective methods to provide practical and industry-relevant training to engineering students. Taiwan serves as an exemplary model in this regard, attributing its success to public-private partnerships that prioritize training and certification programs
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