New Delhi has some exciting news! The Indian government is pushing forward with an ambitious project known as the Semiconductor Mission, which carries a whopping price tag of Rs 76,000 crore. This initiative is specially designed to tackle concerns over the rising influence of China in the semiconductor market. Speaking exclusively to India Press Live, G20 Sherpa Amitabh Kant shared insights on this significant development during the ongoing “World Summit.
The Semiconductor Mission is poised to be a game-changer for the country. Amitabh Kant described it as a “most dynamic measure” that will have a transformative impact in the years to come. To highlight the urgency of this initiative, he referenced Chris Miller’s book on the “Chips War,” pointing out that if China were to take control of Taiwan, it would profoundly affect global industries, including automobiles, batteries, defense, and aerospace.
The reality is that the entire world relies on semiconductor chips, which are essential for functioning in numerous sectors. “For countries to depend entirely on foreign chip suppliers is a risky move,” Kant emphasized, underlining the importance for India to develop its own semiconductor ecosystem. He noted that India, with its vast number of consumers for automobiles and smartphones, has a critical need for these chips.
Kant raised concerns about the current state of global supply chains, stating they are facing severe disruptions. This is largely due to the U.S. imposing heavy tariffs on Chinese imports. At present, imports like electric vehicles have a staggering 100% duty, while batteries and solar products carry duties of 50%. The U.S. rationale for these duties is that the Chinese government offers subsidies to its manufacturers, enabling them to dominate the global markets. As a result, over 70% of the electric vehicle market, 75% of the solar market, and 74% of the battery market are under Chinese control. “It’s time to end this dependency in the global market,” he said decisively.
Kant explained that semiconductors are a crucial industry, as these chips are found in a multitude of products, from medical devices to cars, laptops, television sets, and more. He projected that India’s semiconductor market would reach $64 billion by 2026, nearly tripling its size from just a few years ago in 2019.
In solidarity with this vision, Mark Mobius, founder of Mobius Capital Partners LLP, shared hopeful remarks at the summit, expressing his belief that India is set to become a future leader in semiconductor production, thanks largely to its strong software capabilities and labor availability.
In a significant push, the Indian government is actively working to turn the nation into a major hub for semiconductor manufacturing. Recently, the central government has approved five semiconductor manufacturing proposals, which amount to an impressive combined investment of Rs 1.52 lakh crore.
The momentum generated by these initiatives reflects a strong commitment to building a self-sufficient semiconductor industry within India. As the world continues to evolve and adapt to new technologies, the need for secure and reliable chip production has never been more pressing. India’s ambitious Semiconductor Mission not only aims to create jobs but also to fortify the nation’s economic standing on the global stage.
With this focus on local manufacturing, India is taking the first steps toward ensuring that it is not left behind in the technological race. Families across the country, which rely on smartphones and a variety of digital devices, will benefit from this initiative, as it could help stabilize supply chains and reduce dependency on imports.
Overall, the Semiconductor Mission illustrates India’s forward-thinking approach in a rapidly changing world. As the nation invests in essential technologies, it lays the groundwork for a brighter and more self-reliant future. The journey towards semiconductor independence may be challenging, but with solid plans in place and strong governmental support, India seems poised for notable advancements in this critical sector.
Stay tuned for more updates on this developing story as India strives to emerge as a leading player in the semiconductor industry.
