Rajeev Chandrasekhar Explains Future Of Semiconductor Industry In India, Says Government Is Expecting Investment From Top Players

The Union government would love to see Intel, TSMC, Samsung, and other technology giants invest in India after the cabinet launched a Rs 76,000-crore semiconductor scheme and the interest among global companies are “high”, said the Minister of State for IT Rajeev Chandrasekhar.

According to the minister, India is eager to welcome all semiconductor giants to the country to explore new investment opportunities.

"It is clear that interest levels in global majors after PM's announcement of Rs 76,000-crore initiative is much higher and much more serious today than it ever was in the last many years," he stated.

Meanwhile, according to IT Ministry sources, guidelines on the procedures of applying for semiconductor incentives will be announced in early January 2022 and players will have 45-90 days to react.

However, Chandrasekhar told Business Today: “I'm willing to concede that it's an unprecedented opportunity for India. We have a Prime Minister who understands the value of technology, a Prime Minister who's seen the opportunity for electronics in such clear terms from the very beginning.

“Then there are people like me who have some experience in this space and who are in politics, and we have the entire stars aligned in terms of the post-COVID geopolitical scenario. So, I do believe that if we can’t do it this time, we will never be able to do it again, and I don't like to dwell on that at all. Instead, I think that this time around, we will do it.

“I think that is the kind of confidence that the industry has. That is the confidence with which even the foreign partners, who today are being wooed by every country - every country is laying on the red carpet - look at India with a great amount of respect. Nobody is saying no to India.”

Future Of Semiconductor In India

In an effort to promote India as a worldwide hub for hi-tech production and lure multinational chipmakers, the government authorised the scheme earlier this month to expand semiconductor and display manufacturing in the country. The initiative is likely to help India achieve its goal of being self-sufficient in electronics manufacturing by attracting significant investments and creating 35,000 specialised jobs, in addition to 1 lakh indirect jobs.

Incentives have been lined up for companies engaged in silicon semiconductor fabs, display fabs, compound semiconductors, silicon photonics, sensors fabs, semiconductor packaging, and semiconductor design under India's Rs 76,000-crore scheme for the development of semiconductors and display manufacturing ecosystem. Additionally, the government anticipates investments of roughly Rs 1.7 lakh crore and 1.35 lakh employment in the next four years as a result of the semiconductor incentive scheme.

Earlier this week, people began to assume about Intel's semiconductor plant in India after Ashwini Vaishnaw, Union Minister for Electronics and Information Technology, said “Intel – Welcome to India” in a tweet after the Inter Foundry Services president Dr Randhir Thakur congratulated the Minister for Rs 76,000-crore scheme.

He said, “Congrats to @GoI_MeitY @AshwiniVaishnaw @Rajeev_GoI for Semiconductor design & manufacturing incentives for India as hub for electronics & semiconductors. Glad to see a plan laid out for all aspects of the supply chain: talent, design, manufacturing, test, packaging & logistics.”

Even though the company has not made any official announcement regarding its plan to establish a chip-making plant in India, the IT Minister’s tweet and the congratulation note from Thakur have indicated the possibility.