Prime Minister Narendra Modi on Wednesday said resilience of supply chains is critical for the economy as he made a pitch to boost investments in domestic manufacturing of semiconductors which is the foundation of everything from smartphone to EV and AI.
Speaking at the SEMICON 2024 conference on the outskirts of the national capital, the Prime Minister said the Covid pandemic showed the importance of the supply chain and underscored the need to act to ward off any disruption.
“Resilience of the supply chain is very important,” he said. “India is working to create the same in different sectors of the economy.”
The world witnessed supply shocks during Covid-19, as stringent measures to control the spread of pandemic in China affected the industries and sectors dependent on imports from that country. One of the sectors impacted was chips that form a critical part of every electronic device.
Prime Minister showcased India’s reformist regime, stable policies and a market that has tasted technology to make a strong pitch for investments in semiconductor manufacturing.
“It is our dream to have an Indian-made chip in every device in the world,” he said and added that “We will do everything that is needed to make India a semiconductor powerhouse.”
Talking of steps taken by his government to boost semiconductor manufacturing, he said a reformist government, a growing manufacturing base and an aspirational market that has tasted technology provide a ‘Three-D Power’ for chip making in the country.
“Today’s India inspires confidence in the world. When the chips are down, you can bet on India,” he said.
He said investment of over Rs 1.5 lakh crore has already been committed in semiconductor manufacturing and many projects are in pipeline.
Addressing the gathering, Prime Minister Modi emphasised that this is the ideal time to invest in India. He remarked, “Many projects are in the pipeline, and India today assures the world that when the chips are down, you can bet on India.” Describing India’s semiconductor industry as having “special diodes,” he said, “You invest and create value, while the government ensures stable policies and ease of doing business.”
The Prime Minister highlighted India’s focus on developing semiconductor-related infrastructure, mentioning the creation of a Rs 1 trillion research fund. He noted that initiatives like these will significantly boost innovation in the semiconductor and science sectors.
He further added, “India offers a unique three-dimensional advantage: a reform-orientated government, a growing manufacturing base, and a large, aspirational market. As a major consumer of chips, India has built world-class digital public infrastructure on this very foundation.” He also emphasised that the Indian government is providing 50% support for setting up semiconductor manufacturing facilities in the country.
Prime Minister Modi emphasised India’s significant contributions to the global semiconductor design ecosystem while also stressing the country’s commitment to education and skill development in this field.
He noted, “India accounts for 20% of the talent in semiconductor design worldwide. We are training a workforce of 85,000 technicians, engineers, and R&D specialists, with a focus on preparing students and professionals for the semiconductor industry.” Modi also mentioned that beyond talent development, India is prioritising the creation of semiconductor infrastructure.
The three-day SEMICON India 2024 conference highlights India’s semiconductor strategy and policies, aiming to establish the country as a global hub for semiconductors. The event brings together top executives of global semiconductor giants, as well as industry leaders, companies, and experts. Over 250 exhibitors and 150 speakers are participating in the conference.