Aim to make India a semiconductor hub for the world: Prime Minister Nare

Bangalore: Prime Minister Narendra Modi said that the future demand and importance of semiconductors would be unimaginable. Hence the Government has plans to make India a global hub for semiconductors. Prime Minister Modi said that currently, 20% of the skilled engineers in the field of semiconductors are of Indian origin and that almost 25% of the research centres of semiconductor companies are based in India.

Speaking at the inaugural address of the ‘Semicon India 2022’ conference for semiconductors held in Bangalore, Prime Minister Modi emphasised the importance and unprecedented increase in demand for semiconductors expected in future. It is estimated that the demand in India for semiconductors will be about 80 billion dollars in 2026 and about 110 billion by 2030. Hence, it is vital that India seize this opportunity and that the Government of India takes the necessary steps.

Prime Minister Modi expressed confidence that India could become a global hub for semiconductors. India’s plans to create a digital infrastructure for the economic inclusion of 1.3 billion people would be sufficient to support the demand for semiconductors. The Prime Minister cited the growth story of banking and digital payment systems, which covered large sections of the population, resulting in UPI becoming the fastest and most preferred way of money transaction globally.

Similarly, digital technology will encompass healthcare and public welfare schemes. The average internet data consumption of Indians has gone up, and it will continue to do so. India is heavily investing in developing capabilities in 5G, IoT (Internet of Things) and clean energy. There is an aspiration to connect 6 lakh villages with broadband. Prime Minister Modi has expressed confidence that all these developments will support the semiconductor business. India is headed for robust economic growth, and currently, it has the world’s fastest-growing start-up ecosystem and emerging unicorns. For India’s economic progress to prosper, there has been a transformation in the judiciary with the repulsion of more than 25 thousand outdated and redundant laws. To encourage production capabilities, production-linked incentive (PLI) scheme incentives of over $26 billion in 14 key sectors have been rolled out. Prime Minister Modi said that the results of these schemes in terms of growth in electronics production would soon be seen.

Prime Minister Modi said, “The country recently announced its ‘Semi-con India Programme’ with a total outlay of over $10 billion. This programme aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystems. This will ensure that India becomes a vital part of the global supply chain of semiconductors.” Prime Minister Modi appealed to the industry and the Government to work cohesively to make this a success