India’s growing love with semiconductors
India has been taking quiet but definitive steps towards building indigenous chip design capability for a few years now. Apart from the lucrative market size, there are several other factors contributing to India’s focus on semiconductors:
- To avoid being crippled by the kind of chip shortages that have hit industries across the globe
- To enhance the country’s net value added to the entire electronics manufacturing process
- To gain a strategic advantage because the country does not want to rely on imports for critical infrastructure such as defense and electricity
- To create a positive impact on GDP, significantly reducing its import bills and adding billions to GDP
With subsidies as much as 40–50% of the cost of setting up semiconductor fabs and its offer of more than $1 billion in cash to each semiconductor company that sets up manufacturing units in the country, India is gradually being looked at as a serious player in the semiconductor industry. Over the years, India has developed a large talent pool of chip designers. It is working on adding process engineers to its talent roster and eventually to set up chip fabrication and production.
To add to this, many global semiconductor companies such as ARM, Qualcomm, Intel, Cadence, Texas Instruments, Micron, NXP Semiconductors, MediaTek, AMD, and more recently Google have set up design and software development infrastructure here, helping create a critical mass of talent that understands chip development. Even The Tata Group is set to enter semiconductor manufacturing.
A new breed of deep tech hardware startups is also emerging to further India’s Semicon dream.
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