Semicon 2024: PM Modi Calls on Global Investors to Bet on India’s Chip Future

Key Highlights

• Skilled Workforce: India plans to train 85,000 professionals, contributing 20% of global semiconductor design talent.
• Financial Support: Government offers 50% financial backing for semiconductor manufacturing, attracting ₹1.5 trillion investments.
• Global Collaboration: India launched the Critical Mineral Mission and strengthened partnerships with the US and Japan for semiconductor growth.

Greater Noida, September 11, 2024 – India’s growing ambition to become a global semiconductor hub took center stage as Prime Minister Narendra Modi addressed the Semicon India 2024 event, highlighting the nation’s commitment to driving innovation, attracting investments, and fostering collaboration in the semiconductor industry. Modi’s speech outlined five key initiatives that position India as a pivotal player in the rapidly evolving sector.

A Thriving Ecosystem for Semiconductors

India is now the eighth country globally to host a significant semiconductor event, and PM Modi emphasized that the timing couldn’t be better for investors to back India’s semiconductor ambitions. Using the phrase “when the chips are down,” Modi expressed confidence that India’s semiconductor ecosystem will become a global game-changer. He reinforced that India offers a combination of industrial investment and stable government policies, creating a conducive environment for semiconductor development.

Empowering India’s Semiconductor Workforce

One of the highlights of Modi’s address was India’s growing role in semiconductor design. The Prime Minister revealed that India contributes 20% of the world’s semiconductor design talent, underscoring the country’s capabilities in this critical area. He also laid out plans to create a workforce of 85,000 skilled professionals, including technicians, engineers, and R&D experts, in the coming years.

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“We are preparing India’s workforce to be industry-ready. Training students and professionals to meet the growing demands of the semiconductor sector is a top priority,” Modi said.

Financial Support for Semiconductor Manufacturing

The Indian government’s financial support for semiconductor manufacturing was another focal point of Modi’s speech. He announced that the government is offering up to 50% financial support for setting up semiconductor manufacturing facilities, with state governments contributing actively. This initiative has already attracted investments worth over ₹1.5 trillion, with more projects anticipated.

Additionally, the Semicon India Program will provide comprehensive financial assistance across the entire supply chain, covering front-end fabs, display fabs, and semiconductor packaging.

Securing Critical Minerals for Semiconductor Production

Recognizing the importance of critical minerals in semiconductor manufacturing, Modi launched the Critical Mineral Mission. This initiative aims to boost domestic production and secure international acquisitions of these vital materials. With customs duty exemptions and mining auctions underway, the government is committed to ensuring a steady supply of these resources to meet industry demands.

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India’s international collaborations are also key to this strategy. Modi highlighted ongoing partnerships with nations like the US and Japan through the QUAD Semiconductor Supply Chain Initiative, positioning India as a key player in the global semiconductor supply chain.

Vision for Electronics Growth

In his address, PM Modi also outlined India’s ambition to grow the electronics sector to $500 billion by the end of the decade, a significant leap from the current $150 billion. This growth, he noted, would create six million jobs and further boost the semiconductor industry.

India’s success in mobile phone manufacturing was also highlighted, with the country emerging as the world’s second-largest producer and exporter of mobile phones, particularly 5G handsets. Modi expressed his vision of making India a leader not just in electronics but also in semiconductor production, stating, “Our goal is to ensure that 100% of electronic manufacturing, including chips, takes place domestically.”

A New Era of Global Collaboration

The event, which saw participation from over 250 exhibitors and 150 speakers, served as a platform for discussing the future of semiconductors. Modi’s closing message was clear: India is ready to become a global semiconductor powerhouse, with an unwavering commitment to democracy, technology, and human welfare.

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“When the chips are down globally, you can bet on India,” Modi declared, encapsulating the optimism and potential that India brings to the world’s semiconductor industry.