First Semiconductor Fab Announcement In Few Weeks: Union Minister Vaishnaw

India can expect a vibrant chip industry in the next 3-4 years with the announcement of the first semiconductor fab in a few weeks.

Union Minister Ashwini Vaishnaw revealed that the government's commitment to developing the manufacturing ecosystem, along with enabling policies, will fuel this growth.

During a session at CII Partnership Summit 2023, the minister for Electronics and IT disclosed that the majority of mobile phones used in India today are locally manufactured whereas 10 years ago, 99 per cent of phones were imported out of a total of 100.

"India is now experiencing a shift in its ecosystem towards mobile phone manufacturing. The country is ranked second in manufacturing and third in exports," said the minister.

The Centre has taken significant steps towards boosting the supply side. Its efforts include promoting a stable and consistent policy framework and fostering an ecosystem, according to him.

The government is focused on creating and fostering the semiconductor industry and has been actively engaging with all stakeholders.

The government is "committed to do what's required to succeed", the minister said.

"...that is what is creating that credibility, and that is what is today leading us to almost an inflection point where the first fab should be declared in coming few weeks and that's just beginning," Vaishnaw said.

"We believe that the work the country is doing today, both the industry and the government, the way things are moving.... we should see a vibrant semiconductor industry in the coming 3-4 years," he added.

India's strategy of pursuing a combination of focused consumption and public investment path has led to sustainable growth and moderate inflation, the minister said.