Business News / India's plan on semiconductor is like this, Korea, China and Taiwan kept watching

Business News: During Covid, the world had to face shortage of semiconductors and chips. Due to which there was a shortage of supplies ranging from mobile handsets to vehicles. During that period, the worst impact was seen in the auto and electronic sectors. Before Covid, more than 80 percent of chips and semiconductors were manufactured in China. Manufacturing stopped in China due to strict Covid restrictions. The effect of which was seen all over the world. India has come forward to end this monopoly of China. With the help of many American companies, India has made such a plan regarding semiconductor, after the implementation of which, in the next five years, India will emerge as a super power in global semiconductor. Monopolies of countries like China, Korea and Taiwan will be completely destroyed. Let us also tell you what information the Union Information Technology and Telecommunication Minister Ashwini Vaishnav gave in this regard.

India will become a global leader

Union Information Technology and Telecom Minister Ashwini Vaishnav has said that India will emerge as a strong force in the global semiconductor sector in the next five years with its design capability and incentives of $10 billion. He said that global manufacturers will be attracted to set up new fabs and units and the dominance of countries like Taiwan, South Korea and China in this sector will reduce. Vaishnav said in an interview that the thinking of global companies is now changing and they want to invest in India soon. He said that due to better prepared policies, manufacturers want to set up new FAB (semiconductor fabrication plant) units here. In such a situation, they are investing in related sectors.

Semiconductor is an essential part of electronic components. It is used in everything from vehicles to computers, mobile phones and even washing machines. India already has factories of the world's best vehicle companies like Renault-Nissan to Hyundai. Apart from this, suppliers of computer companies Dell and Apple are also present here. Electronics companies Samsung also have their presence here.

Government has given incentive

Now India wants to expand the manufacturing value chain in fast-growing semiconductor manufacturing. The government led by Prime Minister Narendra Modi has given incentives of Rs 76,000 crore to four players including Micron and Tata. Vaishnav said that one-third of the design talent is in India. India is now presenting itself as a democratic and reliable tech sector in place of China. Vaishnav said that he is of the firm opinion that today every big semiconductor player wants to rethink its investment plan and wants to come to India. The reason for this is carefully prepared policies.

Global companies want to come to India

He said that India will move forward on its design capacity. The country already has inherent and proven capability in this sector. Vaishnav said that with the proposed FAB (chip fabrication plant) and three ATMP (assembly and testing) units, India now has a significant part of the semiconductor value chain. The minister said that those who earlier thought when should we go to India or should we go to India… now they are asking how soon should we go to India. This is the change that is happening today. Practically, this means that now every big player will want to rethink their investment plans and come to India.

Why has the semiconductor sector become important?

When asked when India will emerge as a strong player among the known semiconductor destinations of the world, Vaishnav said definitely in the next five years. This statement of the Info Tech and Electronics Minister becomes important because amid US-China tension, semiconductor is emerging as a new front in the geopolitical war area. India is also moving quickly to offer incentives to position itself as an attractive destination for global companies looking for options to expand operations. Apart from this, champion companies of the domestic sector will also be ready to enter such high tech sector.

Investment of Rs 1.26 lakh crore approved

In fact, due to India's concrete steps and favorable policies, the first commercial ?Fab proposal has been received in the country. This week, the government has approved Tata Group's proposals to set up three semiconductor plants along with its huge fab with a total investment of Rs 1.26 lakh crore. India is now presenting itself as a force among chip manufacturers. Vaishnav explained that for any developing country, with an economy of our size, it is very important to have a semiconductor supply chain within the country. We have very strong design capability. Along with design capabilities, we should also have manufacturing capabilities, only then more value can be added.

Employment will get a boost

Vaishnav believes that semiconductor schemes will make India self-reliant. It will have multiple impacts on the economy and various industries, generate employment and boost livelihoods. As per the recent announcement, Tata Electronics Pvt. Ltd. Taiwan's Powerchip will set up a semiconductor fab in Dholera Special Industrial Area in Gujarat in partnership with Semiconductor Manufacturing Corp. This plant will have the capacity to make 50,000 wafers on a monthly basis. There will be an investment of Rs 91,000 crore in this. Apart from this, the government has also approved Tata's proposal for a new semiconductor assembly and testing plant in Jagiroad, Assam. This facility will be set up with an investment of Rs 27,000 crore. This is expected to create more than 27,000 direct and indirect employment opportunities in this sector.