News Brief

India's First Semiconductor Plant Expected To Be In Place In One Year: Minister Ashwini Vaishnaw

Nayan Dwivedi

Oct 16, 2023, 11:34 AM | Updated 11:33 AM IST

Telecom Minister Ashwini Vaishnaw.
Telecom Minister Ashwini Vaishnaw.

The anticipated inauguration of India's first electronic chip manufacturing facility is on the horizon, with Union Telecom and IT Minister Ashwini Vaishnaw revealing a prospective one-year timeline, as reported by The Times Of India.

The government has allocated an initial $10 billion incentive package to foster a robust semiconductor manufacturing ecosystem, encompassing the establishment of a wafer fabrication plant.

These fabrication facilities are the foundational elements for the creation of physical chips that drive the advanced electronic products of today.

Minister Vaishnaw outlined the strategic areas of focus for achieving global leadership in this domain. He emphasised that the telecom and electric vehicle (EV) segments have emerged as significant domains for semiconductor applications.

He also underscored the concerted efforts in these emerging fields, stating, "We are earnestly working on these areas. Anticipate noteworthy achievements in the coming months, encompassing wafer fabrication, chip design, manufacturing, and the entire semiconductor ecosystem."

When asked if it would be in a year, the minister said, "No. We will see success very soon."

He credited the confidence of the global community in India's capabilities, citing the successful investment made by the US-based storage chip manufacturer, Micron, in India.

The company had earlier announced its commitment to establish a semiconductor assembly and testing plant in Gujarat, entailing a total investment of $ 2.75 billion (approximately Rs 22,540 crore).

According to Vaishnaw, "As per the information available to me, five companies affiliated with Micron have initiated the land identification process. One of Micron's key ecosystem partners, specialising in substrate production, is already in the land allocation phase."

The government has already established a timeline for the commercial launch of India's first homegrown chipsets under the Digital India RISC-V programme, anticipated to be realised by 2023-24.

To achieve this, premier institutions like IIT Madras and the Centre for Development of Advanced Computing (CDAC) have developed two microprocessors, Shakti (32-bit) and Vega (64-bit), respectively, based on open-source architecture, under the auspices of the Ministry of Electronics and IT's Microprocessor Development Programme.

Minister Vaishnaw emphasised that the government's efforts are centered on fostering the development of 4-5 critical components, with the intent to establish India as a global hub capable of not only fulfilling domestic demands but also exporting these components to the international market.

Nayan Dwivedi is Staff Writer at Swarajya.

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