New Delhi, Sep 7 (IANS) As India moves towards becoming a global semiconductor hub, industry experts said on Saturday that the country is likely to receive massive investments of up to $30 billion in the sector in the next three to five years, further strengthening its position in the global supply chain.
On Thursday, the Maharashtra government approved four major projects involving a total investment of Rs 1.17 lakh crore, including a semiconductor manufacturing project to be jointly set up by Israel’s Tower Semiconductor and the Adani Group.
The project will be set up at Panvel in Raigad district, with a proposed investment of Rs 58,763 crore in the first phase and Rs 25,184 crore in the second phase, creating at least 15,000 jobs.
According to Prabhu Ram, VP-Industry Research Group, CyberMedia Research (CMR), India’s strategic investments in the semiconductor industry are aimed at enhancing its domestic manufacturing capabilities and strengthening its position within global supply chains.
“By expanding production capacity, the country is poised to become a major player in the sector. National initiatives such as the Semicon India Programme and India Semiconductor Mission are focused on securing a significant share in the global market, promoting innovation and stimulating economic growth through job creation and technological advancement,” Ram told IANS.
During Prime Minister Narendra Modi’s recent visit to Singapore, the two countries announced cooperation in the field of semiconductors.
Singapore and India will leverage their strengths in their semiconductor ecosystems and take advantage of the opportunities presented by the emerging semiconductor supply chains. This will include government focus on ecosystem development, supply chain simplification, and workforce development, along with flexibility in policy exchanges.
PM Modi also visited AEM Holdings, a leading company in the semiconductor and electronics sector, along with his counterpart Lawrence Wong and discussed opportunities for cooperation here.
The Union Cabinet chaired by PM Modi has also approved the proposal of Kaines Semicon Pvt Ltd to set up a semiconductor unit at Sanand, Gujarat with an investment of Rs 3,300 crore, which will produce around 60 lakh chips per day.
In March, PM Modi laid the foundation stone of three semiconductor projects worth Rs 1.25 lakh crore. According to the report, India’s semiconductor market will reach $64 billion in 2026, almost three times the size of 2019.
–IANS
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