India’s semiconductor manufacturing sector is poised for significant growth, with Communications and IT Minister Ashwini Vaishnaw stating that the country is likely to receive two high-quality proposals for semiconductor fabs within the next 12 months. The Government’s efforts to attract global semiconductor players have gained traction, with Micron, a prominent US packaging and assembly player, already leading the way. Additionally, collaboration with Taiwan is expected to further boost India’s position in the semiconductor industry.
Positive Response from Micron and Ecosystem Partners
Micron, one of the leading companies in the semiconductor industry, has already made significant strides in India. Its presence has led to the establishment of an ecosystem with five more companies joining as partners. The swift execution of agreements and approvals has instilled confidence in potential investors, encouraging more companies to evaluate India as an attractive destination for semiconductor production.
Upcoming Approvals and Focus on Ecosystem Building
The Indian government is actively engaging with multiple semiconductor companies and aims to approve two more high-quality proposals for semiconductor fabs within the next year. Moreover, the government has already approved six design companies, aiming for full execution. Efforts are focused on building a robust semiconductor ecosystem and accelerating decision-making processes to attract further investments.
Taiwan-India Collaboration in Semiconductor Manufacturing
India is keen to collaborate with Taiwan, a global leader in semiconductor manufacturing. The aim is to have at least one Taiwanese semiconductor company establish a presence in India, contributing to the growth of the semiconductor industry. The governments of India and Taiwan are working together to foster this collaboration and achieve positive results.
Engaging Foxconn for Comprehensive Manufacturing Activities
The Indian government is in discussions with Foxconn to encourage the company to view India as a major destination for all its manufacturing activities, including design and component manufacturing. India’s favorable policies and growing expertise in electronics and complex design processes make it an appealing manufacturing hub.
Financial and Taxation Reforms to Support the Sector
In line with the government’s focus on prompt action and nuanced understanding of the semiconductor industry, efforts are underway to establish specialized units within the finance ministry. These units will be dedicated to handling matters related to the manufacturing of electronics, mobile phones, telecom, and semiconductors, streamlining decision-making processes and supporting the sector’s growth.
