India has approved An investment of 18.2 billion dollars To develop ten semiconductor projects and thus create an entire chip industry from scratch. The country wants to reduce its dependence on imports and compete with powers such as Taiwan and United Statesbut the country will be necessary for more than money to execute its strategy.
Ambition is disproportionate. India is one of the largest consumers of electronic devices in the world, but it does not practically No local chips industry. Its implementation in the semiconductors aims to create the entire supply chain, from the design to the manufacture, tests and packaging, in the region. The approved projects include two manufacturing plants of semiconductors and multiple test and packaging factories.
The opportunity of India. The race began in 2022, when the United States restricted chips exports of advanced to China. This triggered a global competition for self -sufficiency in semiconductors, and for India was a golden opportunity to reduce imports and capture a greater share of the global market of electronic devices that moves away from China.
Beyond money. Stephen Ezell, Vice President of Global Innovation Policy in Information Technology and Innovation Foundation, Explain which India needs “more than a few semiconductor factories.” The Executive explains that leading manufacturers “consider up to 500 different factors before investing billions in a plant”, including talent, fiscal policies, labor regulations, technological infrastructure and customs policies, areas in which India still has pending work.
The Government changes strategy. New Delhi has modified its approach initial. In 2022 he focused only on advanced chips of 28 nanometers or less, but this did not help develop the nascent Indian industry. Now the government finances 50% of the costs of all manufacturing projects, regardless of the size of the chip, and also supports the test and packaging units.
Star projects are already underway. The largest current project is the semiconductor manufacturing plant of 11,000 million dollars That Tata Electronics builds in Gujarat, in association with the Taiwanese Powerchip Semiconductor Manufacturing Corp. The installation will produce chips for energy management, screen controllers and microcontrollers that can be used in AI, automotive and data storage.
Talent exists, but it is limited. India has a reserve of engineers who already work for global chips design companies since the 90s. However, Jayanth BR, recruiter with more than 15 years of experience in the sector, Explain that international companies only subcontract design validation work “at the block level” to India. The central design remains in the United States or Singapore.
Intellectual property is the great challenge. Sajai Singh, partner of the Jsa Jsa Advocates & Requests, Point out that India must update its intellectual property laws and improve application mechanisms. “Our competition is with countries like the United States, Europe and Taiwan, which not only have solid Pi laws, but also a more consolidated ecosystem for chips design,” he explains.
And now what. The next three or four years will be decisive for the objectives of semiconductors of India, according to Sujay Shetty, general director of semiconductors at PWC India. There are still factors that India must stop, since manufacturing plants require specific locations without flooding or vibrations, with reliable road connections and suppliers of specialized chemicals that meet standards of ultraralta purity. India is still far from producing 2 nanometers avant -garde chips, but could find its niche in assembly and semiconductor tests, a sector with lower capital requirements and better margins.
Cover image | Brian Kostiuk and Naveed Ahmed
In Xataka | The undisputed winner of the aggressive competition of TSMC, Intel and Samsung is a European company: ASML
GIPHY App Key not set. Please check settings