India is ambitiously positioning itself as a global hub for semiconductor manufacturing. The ongoing Semicon India 2024 conference in Greater Noida is a showcase of the country's semiconductor strategy and policy. Prime Minister Narendra Modi's catchy statement, "the chips are never down in India," serves as an open call for industry stakeholders to make significant investments in the country. However, while India's growth potential is promising, sustained government support will be crucial to delivering on the Prime Minister's promise of creating an integrated ecosystem for international players.
The Ubiquity and Importance of Semiconductors
Semiconductors are the backbone of modern technology, found in everything from smartphones and automobiles to washing machines, pacemakers, and airplanes. This makes the semiconductor industry highly competitive, with global leaders such as Taiwan, South Korea, Japan, the U.S., and China dominating the field. Taiwan, in particular, boasts a robust, end-to-end supply chain and is home to thousands of semiconductor-related companies, making it the global leader.
The Covid-19 pandemic, however, caused significant disruptions in semiconductor production, especially in Taiwan and China, underscoring the need for a diversified global supply chain. It was during this period that India launched the India Semiconductor Mission (ISM) in 2021, aiming to capitalize on the shifting dynamics and establish itself as a key player.
India’s Challenges in the Competitive Semiconductor Market
While India is keen to secure a larger share of the global semiconductor market, the path forward will be far from easy. Countries across Asia are aggressively courting investors with attractive incentives, and the U.S. has set a goal to triple its domestic semiconductor manufacturing capacity by 2032, following the passage of the CHIPS and Science Act.
To move beyond the optimism and rhetoric, India will need to establish clear timelines for achieving its semiconductor ambitions. The ease of doing business will be a decisive factor in attracting long-term investments. While India's semiconductor ecosystem is still in its nascent stages, there should be no hesitation in learning from the experiences of more established countries.
A Long-Term Vision for Success
India's dream of becoming a semiconductor powerhouse is ambitious but achievable, provided it can overcome the challenges posed by a highly competitive global landscape. The government's role in facilitating a conducive business environment and learning from the successes of other nations will be crucial to ensuring that India's semiconductor journey is a success
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