PM Modi highlights India’s growing role in global semiconductor industry
New Delhi, Sep 11: Prime Minister Narendra Modi today inaugurated SEMICON India 2024 at the India Expo Mart in Greater Noida, Uttar Pradesh. During the event, which runs from September 11 to 13, Modi toured the exhibition showcasing India's semiconductor strategy and policy, that aims to establish the country as a global hub for semiconductor manufacturing.
At the event, the Prime Minister said “India is the eighth country in the world to host a global semiconductor event,” Mod encouraged participants by stating, "This is the right time to be in India. You are at the right place at the right time. In 21st-century India, the chips are never down," adding, “When the chips are down, you can bet on India.”
Modi highlighted India’s policies and ease of doing business, likening them to an integrated circuit that supports a all-inclusive ecosystem. The Prime Minister noted India’s contribution of 20% to global chip design and announced that the country is building a semiconductor workforce of 85,000 technicians, engineers, and R&D professionals.
The Prime Minister highlighted India's consumption of chips and its role in building the world’s finest digital public infrastructure. "This small chip is doing big things to ensure last-mile delivery in India," he said, recalling how Indian banks remained operational during the global banking crisis triggered by COVID-19. He pointed to the success of India’s digital platforms such as UPI, Rupay, Digi Locker, and Digi Yatra, all of which have become integral to daily life. He declared that "India is set to play a big role in driving the global semiconductor industry."
Modi highlighted the government’s offer of 50% financial support for semiconductor manufacturing facilities, with additional support from state governments. These policies, Modi revealed, have attracted investments exceeding `1.5 trillion, with more projects in the pipeline. Modi reiterated India’s ambition to become a semiconductor powerhouse, declaring, "Our dream is that every device in the world will have an Indian-made chip."
Modi also discussed the Critical Mineral Mission, which aims to boost domestic production and overseas acquisition of essential minerals for semiconductor manufacturing. He noted the government’s efforts to accelerate customs duty exemptions and mining auctions for these minerals.
Oil Diplomacy to Silicon Diplomacy
Highlighting international collaborations, Modi referred to the shift from "Oil Diplomacy" to "Silicon Diplomacy," and stated India’s role as Vice Chair of the Indo-Pacific Economic Framework’s Supply Chain Council. He cited agreements with Japan, Singapore, and the United States, reflecting India’s growing influence in the global semiconductor sector.
Plans to establish a Semiconductor Research Centre at the Indian Institute of Space Sciences, in collaboration with IITs, were also unveiled. The centre will focus on developing next-generation chips, further positioning India as a leader in semiconductor innovation.
He referenced the Anusandhan National Research Foundation’s recent meeting aimed at advancing India's research ecosystem, with a dedicated research fund of `1 trillion. Modi said that these initiatives will expand the semiconductor industry and drive innovations across various science sectors.
With the Indian electronics sector now valued at over $150 billion, Modi set a target to grow it to $500 billion and create 6 million jobs by the end of the decade, emphasizing the direct benefits this growth will bring to the semiconductor sector. “Our goal is that 100% of electronic manufacturing should happen in India. India will make semiconductor chips and the finished product too,” he added.
Modi stressed the importance of resilient supply chains, drawing a comparison to design principles that avoid a "single point of failure." Modi noted that global industries have been impacted by supply chain disruptions, whether due to COVID-19 or conflicts, and emphasized India’s central role in building resilience across sectors.
The Prime Minister linked technology and democratic values, warning that the absence of democratic values could quickly lead to negative consequences. Modi concluded with a strong message: “Whether it is mobile manufacturing, electronics, or semiconductors, our focus is clear —we want to build a world that doesn’t stop or pause in times of crisis but keeps moving forward.”
CEOs Applaud India’s Semiconductor Industry’s Growth
Global leaders in the semiconductor industry praised India’s ambitious plans to become a semiconductor hub. Over 100 CEOs and CXOs of the semiconductor industry are attending the event.
Ajit Manocha, CEO of SEMI, hailed the “unprecedented” scale of the event, which saw over 250 exhibitors and 150 speakers. He said the gathering's “exponential” significance, noting the industry's commitment to making India a trusted partner in building a global semiconductor hub.
Tata Electronics CEO Dr Randhir Thakur, highlighted India’s progress in semiconductor manufacturing, referencing Modi’s laying of the foundation stones for India’s first commercial fab in Dholera and the Indigenous OSAT factory in Assam earlier this year. “The outstanding collaboration demonstrated by the India Semiconductor Mission reflects the Prime Minister’s message of operating with a sense of urgency,” said Thakur. He assured that the semiconductor industry would be key to realizing India’s vision for Viksit Bharat 2047, with a multiplier effect on job creation.
Kurt Sievers, CEO of NXP Semiconductors, praised India’s ambition and transformation, noting the “multiplier effect” semiconductors have on various sectors. He announced plans to double NXP’s R&D efforts in India, surpassing $1 billion in investment, and highlighted the importance of “innovation, democracy, and trust” in ensuring long-term success.
Renesas CEO Hidetoshi Shibata shared details of the company's plans to expand its presence in India, with a pilot assembly and test facility already under construction in Gujarat. Shibata also revealed that Renesas intends to double its workforce in India by next year, underscoring the country’s growing role in global semiconductor design.
Luc Van Den Hove, CEO of IMEC, highlighted the importance of long-term research and development in India’s semiconductor strategy. He assured Prime Minister Modi that IMEC is ready to form strategic partnerships to support India’s ambitious goals, while noting the need for a reliable supply chain and declaring, “Who can be a better-trusted partner than the world’s largest democracy?”
Modi’s Singapore Visit and Semiconductor Collaboration
Recently, during Prime Minister Modi’s two-day visit to Singapore, both countries strengthened ties in the semiconductor sector. Modi’s meeting with Singaporean business leaders and experts paved the way for strategic collaboration in semiconductor manufacturing and innovation. In a message posted on X (formerly Twitter), the Prime Minister highlighted this cooperation, stating, “Semiconductors and technology are important facets of India-Singapore cooperation. This is also a sector where India is increasing its presence.” Modi’s visit to AEM Holdings Ltd, a leading player in semiconductor testing in Singapore marked a significant step in strengthening India-Singapore semiconductor ties.
Prime Minister Modi extended an invitation to Singaporean semiconductor firms to participate in SEMICON India, emphasizing the importance of India-Singapore cooperation. “This is the moment,” said Modi, urging both countries to seize the opportunity to reshape the future of the global semiconductor landscape.
Singapore’s contribution to the semiconductor sector is significant, accounting for 10% of global output and 20% of semiconductor equipment production. The partnership between India and Singapore promises mutual benefits, particularly in talent development and knowledge sharing, with both nations focusing on establishing a robust semiconductor ecosystem. The recently signed MoU on the India-Singapore Semiconductor Ecosystem Partnership highlights this strategic collaboration.
As global semiconductor companies look to move operations out of Singapore due to rising production costs, India’s abundant land and skilled labour offer an attractive alternative.
