Semicon India 2024: PM Modi says when things go bad, you can bet on India – Industry News

Prime Minister Narendra Modi on Wednesday inaugurated the three-day Semicon India 2024 and in a message to the global industry, he said it was the right time to be in India with the government offering stable policies and ease of doing business in terms of investments.

“India is the eighth country in the world to implement a major programme related to the global semiconductor industry. I can proudly say that it is the right time to be in India. You are at the right place at the right time. In the 21st century in India, things are never on hold,” he said.

Addressing the industry, he said that today's India inspires confidence in the world and offers an integrated ecosystem for the industry, with the government determined to do everything to make the country a semiconductor powerhouse. When chips are down, you can bet on India, PM Modi said.

Speaking about the three-dimensional power that is the foundation of the Indian semiconductor industry, Prime Minister Modi said that the first is the current reformist government, the second is the growing industrial base in India and the third is India's ambitious market – a market that has tasted technology. For all of you, this three-dimensional power is a foundation of the semiconductor industry that is hard to find anywhere else, he added.

Speaking about India's growing position in the global chip manufacturing industry, the Prime Minister said the country contributes 20 per cent of global talent and this figure is growing. For India, chip is not just a technology but also a means to meet consumer aspirations. India is a major consumer of chip,” he said.

India's semiconductor sector is on the verge of a revolution, with game-changing advancements expected to transform the industry, Prime Minister Narendra Modi has said.

The Prime Minister said that the government is working with a 360-degree approach for the semiconductor industry and the country is working to increase the number of chips produced in India. He said that India's dream is to reach a stage where every device in the world has a chip made in India. This era is the era of silicon diplomacy, PM Modi said.

Shashwath TR, CEO, Mindgrove Technologies, said, “We are encouraged by the Prime Minister’s assertion that every device should have a chip made in India. The Indian government has been championing the cause of semiconductors through the flagship PLI and DLI schemes. As a DLI-backed startup, we are very grateful for this vision and support. India alone consumes over a billion chips per year and the global consumption could reach a hundred billion, all chips combined. We look forward to meeting some of this demand with Mindgrove Silicon.”

Prime Minister Narendra Modi also said, “We have recently announced a ‘Critical Minerals Mission’ to boost domestic production and overseas procurement of critical minerals. We are working towards setting up a research centre for semiconductors at the Indian Institute of Space Science and Technology and are also partnering with IITs and developing international collaborations.” He also claimed that India is now the world’s second largest producer and exporter of mobile phones and the country aims to manufacture 100 per cent of electronics products in India itself, from semiconductors to finished products.

Earlier, after meeting the Prime Minister ahead of the Semicon India Summit 2024, Kurt Sievers, CEO, NXP, appreciated PM Modi’s vision for the development of semiconductors in India. “I am really excited and delighted by Prime Minister Modi’s vision, consistency and foresight on what is required from the perspective of developing the semiconductor industry ecosystem in India. After speaking to many political leaders in the rest of the world, I have not met any with such deep expertise in our specific sector. It is very impressive,” he said.

Micron CEO Sanjay Mehrotra also said that the policies put in place by the Prime Minister to encourage semiconductor manufacturing in India are very exciting.

Reacting to the magnitude of the event, Kanishka Chauhan, Senior Principal Analyst at Gartner, said, “Events like this attract attendees and exhibitors from across the globe. As per the details on the website, there are around 270 exhibitors. These vendors include not only semiconductor companies but also equipment vendors, specialty machine vendors for semiconductor manufacturing, and end-use device manufacturers. The list is diverse. Bringing all these vendors under one roof provides ample opportunities for networking, investing, and collaboration. It serves as a platform that fosters partnerships and collaborations while attracting investor attention and building confidence in the industry. While it is difficult to quantify the tangible outcomes of these events, they undoubtedly act as catalysts that benefit the industry.”

I would say the industry is just starting to take shape. While it is too early to give a definitive verdict and these developments do not happen overnight, there is clear progress being made in the right direction, added Kanishka Chauhan.

In February 2024, the Indian government had approved three semiconductor facilities, which began operations in March 2024. These facilities are expected to deploy 10-15% of their estimated Rs 1.25 trillion investments by fiscal 2025, with initial results expected in the second half of fiscal 2026, said Aditi Nayar, chief economist, research and outreach, ICRA.

The India Semiconductor Mission (ISM) has approved five semiconductor units to receive grants from the central and state governments under the India Semiconductor and Display Manufacturing Ecosystem Development Scheme, with a total investment of Rs 76,000 crore.