India's Semiconductor Mission: Govt Set To Approve Two Silicon Fab Deals By October-November This Year

In a big boost to India's Semiconductor Mission, the government is reportedly set to sign deals for up to two silicon fabs by October-November this year.

According to Union Minister of State for Electronics and IT Rajeev Chandrasekhar, the approval for fab manufacturing, specifically wafer fab, is expected to be granted before October or November this year.

"I am willing to tell you with reasonable confidence that before October or November this year, fabs will be approved. This will be fab manufacturing, the actual wafer fab," Chandrasekhar was quoted as saying by the Times of India.

This announcement comes as global companies recently visited Gujarat for the "Semicon India 2023" event to expand semiconductor production in India.

Chandrasekhar stated that companies are willing to invest in India due to the strong demand for semiconductors and the country's growing reputation as a trusted partner in the electronics ecosystem.

India's electronics industry is rapidly growing and aims to reach a target of $300 billion by 2026.

"Electronics in India is now reaching a critical mass, and the target that we have set out for is $300 billion by 2026. We are on track to achieve this... This would result in a massive need for semiconductors, which we estimate to touch $110 billion by 2029," said the minister. During Semicon India 2023, US chipmaker Micron announced that the total investment in their factory in Gujarat, with support from the Centre and Gujarat government, will amount to $2.75 billion.

"To have Micron - one of the world's largest semiconductor memory companies - as the first to invest in India, is a big achievement...," the minister said.

The minister expressed confidence that more companies will follow Micron's lead, recognising the advantages of being a first-mover in the Indian market.

The minister is also optimistic about India's prospects in the semiconductor race, as favourable responses from companies indicate that India can surpass China with lower investments.

"China exports $900 billion worth of electronics but simultaneously needs to import almost $600 billion of semiconductors. They have spent $200 billion in the last 20 years on semiconductors and flopped," he said.

"On the other hand, we are spending just $10 billion (India's semiconductor incentive package for investors) and we will be in a position to achieve what even bigger countries - who have spent 10 times more money - have not been able to achieve in over 20 years. We have a big opportunity, at least in semiconductors, to surge ahead of China," he added.