India’s recent approval of three semiconductor plants, representing a colossal investment of $15.2 billion, marks a significant leap towards its ambition of becoming a global hub for electronics manufacturing and design. This initiative not only underscores India’s strategic efforts to reduce its dependency on foreign semiconductor supplies but also highlights its push to claim a stake in the highly competitive and geopolitically sensitive semiconductor industry.
The announcement comes at a time when the global semiconductor industry is facing unprecedented demand coupled with supply chain bottlenecks, exacerbated by the COVID-19 pandemic and geopolitical tensions. Semiconductors, or chips, are integral components of a vast array of products, from basic consumer electronics to advanced defense systems, making them crucial for national security and economic growth. India’s entry into semiconductor manufacturing is not just about economic development but also about securing its position in the global supply chain and enhancing its technological sovereignty.
The projects involve two fabrication plants (fabs) and one packaging facility, with Tata Group and CG Power among the key investors, in collaboration with international partners such as Taiwan’s Powerchip, Japan’s Renesas Electronics, and Thailand’s Stars Microelectronics. The construction of these plants is expected to begin within the next 100 days, highlighting the urgency and priority the Indian government places on this sector.
