With India’s electronics sector now valued at over $150 billion, Prime Minister Narendra Modi on Wednesday outlined a larger goal to grow the sector to $500 billion and create six million jobs by the end of this decade and said the world today is moving forward to an era of ‘Silicon Diplomacy’ from an era of ‘Oil Diplomacy’.

Speaking at the inaugural session of Semicon India 2024, he said that this growth will directly benefit India’s semiconductor sector. “Our goal is that 100 per cent of electronic manufacturing should happen in India. India will make semiconductor chips and the finished product too.”

Welcoming the global semiconductor manufacturers at the event, he said, “This is the right time to be in India. You are at the right place at the right time. In 21st-century India, the chips are never down...When the chips are down, you can bet on India.”

Modi Informed that India’s contribution to the world of design is 20 per cent and is growing continuously. India is creating a semiconductor workforce of 85,000 technicians, engineers, and R&D experts.

Pointing out the numerous steps taken by the government to promote semiconductor manufacturing, he highlighted that the government is offering 50 per cent financial support for setting up semiconductor manufacturing facilities, with State governments also playing a key role in this effort.

Semiconductor investments

“Because of these policies, India has attracted investments worth more than ₹ 1.5 lakh crore in a very short time and many more projects are in the pipeline. Our dream is that every device in the world will have an Indian-made chip,” he said reiterating  India’s ambition to do whatever it takes to become a semiconductor powerhouse.

He also said that India is focused on making its students and professionals industry ready, recalling the first meeting of the Anusandhan National Research Foundation which aims to give new direction and energy to India’s research ecosystem. He also mentioned a special research fund of ₹1 lakh crore.

Modi also informed us that India has been chosen as Vice Chair of the Indo-Pacific Economic Framework’s Supply Chain Council and is a key partner in the QUAD Semiconductor Supply Chain Initiative. Additionally, agreements have been signed with countries like Japan and Singapore, and India is deepening its cooperation with the United States in the semiconductor sector.

“India’s semiconductor ecosystem is a solution not just for India’s challenges but also for global challenges...whether it was Covid or war, there hasn’t been a single industry to remain unaffected by supply chain disruptions,” he noted.

The Prime Minister expressed confidence in India’s ability to strengthen global efforts and extended his best wishes to all stakeholders involved in this mission. “Whether it is mobile manufacturing, electronics, or semiconductors, our focus is clear—we want to build a world that doesn’t stop or pause in times of crisis but keeps moving forward,” he added.

Semiconductor manufacturing

On Tuesday, Modi also chaired a roundtable with the executives of semiconductor manufacturers. They discussed a wide range of subjects related to the sector, including  how this sector can further out planet’s development trajectory.

The CEOs appreciated India’s commitment to the growth of the semiconductor sector and said that what has transpired today is unprecedented, wherein leaders of the entire semiconductor sector have been brought under one roof.

For instance, Sanjay Mehrotra, CEO of Micron said, “This is the perfect timing for India’s semiconductor mission, to develop semiconductor opportunities, because AI will grow, opportunities will increase and I really believe that the best is yet to come.”

Ajit Manocha, CEO of Semiconductor Equipment and Materials International (SEMI), said that the industry wants to become a trusted partner with India, and this industry will double its revenue to $1 trillion, which has not happened in the past so many years.

Kurt Sievers, CEO of NXP said, he was happy with Modi’s vision, consistency, and foresight into what is needed from a semiconductor industry ecosystem development perspective for India.

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