New Delhi: With five semiconductor units in commercial production and global companies lining up fresh investments, the initial questions around India’s chip strategy have given way to a growing vote of confidence, IT Minister Ashwini Vaishnaw said on Saturday, adding that he has full faith that youth-driven startups in India will build homegrown Qualcomms and Intels.
In an interview to PTI, Vaishnaw said several countries view India as a trusted partner, but cautioned that the semiconductor industry and deeptech startups must remain vigilant against potential cyberattacks, threats and disruptions from those seeking to hinder India’s rise in the global semiconductor value chain.
Over the past four to five years, global perception about India’s manufacturing capabilities has undergone a fundamental shift, Vaishnaw said, noting that initial questions have dissolved into a vote of confidence as projects progressed from construction to pilot testing, and now full-scale commercial production.
Global CEOs are now preparing to invest, with many in the midst of finalising local partnerships and plant locations, Vaishnaw said, revealing that one chief executive had, in fact, told him during a conversation that his board had authorised him to commit as much capital for their India semiconductor plans as the team can possibly execute.
“So, that kind of response is validation of our efforts, but I still say, this is just the first step…the foundation. A lot more has to be done because in an industry as difficult and as complex as the semiconductor industry, it is very important for us to have that perseverance, patience and meticulous follow-up,” Vaishnaw said.
Emphasising that India’s long-term success in semiconductors would depend on building differentiated products, not merely focusing on existing market solutions, Vaishnaw urged young innovators to showcase their design capabilities to compel manufacturers to adopt Indian supply chains.
The minister expressed confidence that youth-driven efforts will produce the next Qualcomms and Intels in coming years.
“I am sure we will have Qualcomms and Intels coming from India in the coming years, as the younger generation takes over the responsibility of building good products,” Vaishnaw said.
The minister’s comments come as India has made an aggressive bid to build a flourishing semiconductor ecosystem, widening the focus beyond chip fabrication to equipment, materials, packaging, design and other critical links in the supply chain.
Under the Rs 1,27,500-crore Semicon 2.0 policy push, India is deploying heavy capital incentives, flexing its engineering capabilities, and consumer market strength to create an end-to-end semiconductor value chain, from chip design to fabrication and testing to talent development.
According to the government, about USD 11-12 billion of semiconductor investment interest has emerged under Semicon 2.0, with projects expected to materialise over the next two to three years.
The interest was reflected at the SEMICON India event – a mega showcase of the nation’s chip-making prowess – that saw a slew of big-ticket announcements, including Applied Materials’ USD 5 billion India plan through 2035, Lam Research’s proposed Rs 10,000-crore investment, Tata Electronics’ 363-acre vendor park at Dholera and Fujifilm’s Rs 800-crore semiconductor materials plant.
Vaishnaw said key goals under the Semicon 2.0 include getting at least three large global equipment manufacturers and three primary material suppliers to set up bases in India, while integrating local MSMEs into precision manufacturing.
To expand the country’s design and human capital, the government is targeting 200 chip-design startups receiving venture funding, training 1,00,000 skilled technicians, upgrading university courses from chip design to complete system design, and ultimately generating over one lakh jobs, he added.
Vaishnaw highlighted the strong global participation at SEMICON India, saying nearly 600 companies from across the semiconductor value chain took part in the three-day event, with major pavilions from South Korea, Japan and Singapore, whose governments are encouraging their companies to set up design and manufacturing facilities in India.
He said the five operational semiconductor plants in India are “globally competitive” and export to major markets, including Japan, Europe and the US, demonstrating that the country can manufacture chips at costs and quality that meet international standards.
“It is very important to make sure that the cost is competitive and quality is such that it should be able to stand in the global market,” the minister said.
Vaishnaw also cautioned the semiconductor industry and deep-tech startups to stay vigilant against potential geopolitical disruptions and cyber threats as India emerges as a global competitor.
“We should be cognizant of the risks and the challenges which may come from other players. So, I have, very candidly, told the entire industry that be prepared for cyberattacks, be prepared for any other kinds of threats and any other kinds of disruptions that might get created by countries which don’t like India to come up in the semiconductor value chain,” Vaishnaw said.
“Since we have candidly spoken to them (industry), they are cognizant, and they would certainly take the right measures.”
