The Rise of Semiconductor Industry in India

From mobile phones to medical devices, electronic vehicles to fighter jets, semiconductors find application everywhere. To an extent, they are even consider to be the brain of modern electronics, while some consider them to be the heart of modern technology. Due to the advancements in technology and almost every other thing being integrated with smart technology, there has been a surge in demand for semiconductors, which only a few big players in the industry have been able to meet without the need of sourcing materials from other countries. The semiconductor industry India is currently booming and has been working on strategies for developing the domestic chip production capability. The Asia Pacific is considered to be the most preferred and biggest destination in the world for semiconductors. Countries like India have the potential to emerge as key players in the semiconductor industry thanks to the potential of their young minds and major investment opportunities.

Can India Solve the Semiconductor Shortage that the World is Facing?

The answer to this is India’s growing status in industrialisation and modern technologies making their way to the country. Currently, there are only a few players in the world who are capable of designing or manufacturing semiconductors. But as India is gradually opening doors for semiconductor manufacturing companies to set up their units in the country as a means to help solve the global supply chain issues, the shortage issue may see resolution yet. The Indian Government has also earmarked INR 76,000 crore for attracting semiconductor companies to build and operate their plants in India to curb the issue and to establish India as a global electronics production hub. The good news is that the Indian Government has already started accepting proposals from semiconductor manufacturers to open their plants in India. Not just foreign companies, but Indian-born companies are also planning to invest in the semiconductor industry to make an impact and move a step further into becoming a self-reliant nation.

Where is the Indian Semiconductor Industry Projecting to?

The era of the 1960s was the beginning of the silicon revolution in India. According to the government’s official records, the semiconductor industry in India, worth $27 billion, is expected to reach $63 billion. The semiconductor industry is highly complex and is very capital intensive. Currently, India must depend on East and Southeast Asian countries for importing semiconductors even for the country’s defence and space industries. The investment that the government of India has put in, will work towards making India self-sufficient and not dependent on foreign countries for importing semiconductors. Additionally, the government also plans to offer financial assistance to companies looking at opening semiconductor units in India. These incentives would boost their confidence and also help in job creation. The overall objective of funding in the semiconductor industry is to project India as the global hub for electronic goods.

With the development of the semiconductor industry in India, the domestic semiconductor manufacturing capabilities will have a multiplier effect on the overall economy and significantly contribute toward making India a self-sufficient and digitally independent nation. One of the biggest names in the Indian semiconductor industry, Mitsubishi Electric provides a range of semiconductors and devices like power modules that are designed for high-efficiency and low-cost operations.