India’s Semiconductor Plan had a Rocky Start
In 2022, Prime Minister Narendra Modi and the Indian government launched the India Semiconductor Misson, which aimed to promote semiconductor design, manufacturing, and innovation in India. The successful integration of which would make the country a leader in the electronics manufacturing space.
This initiative came with the inauguration of Semicon India, an annual roadshow aimed to bring focus to India’s semiconductor ecosystem. The first 3-day Semicon India event took place in Bengaluru, Karnataka in 2022. Many schemes, incentives and partnerships were announced as a part of this event, most pertaining to partnerships and agreements between national institutions.
However, due to the initial tight deadline of submission, and after a collaboration between India and the joint venture of Vedanta – Foxconn was called off because of Foxconn pulling out, things have been slow.
An Improved Semiconductor Plan introduced with Semicon 2023
The initial journey may have been bumpy, but ahead of Semicon 2023, the government of India had been working hard to attract more manufacturers to present their proposals. This includes the Modified Programme for Semiconductors and Display Fab Ecosystem policy.
Semicon 2023, the 3-day event took place from 28th July to 30th July in Gandhi Nagar, Gujrat. This second annual Semicon event helped bring a better focus on the application process – which has been modified. The event also expanded on India’s requirements and plans and discussed the future of India in the Semiconductor space.
Just about a month before this event, Micron Technologies, a US-based semiconductor manufacturer signed a Memorandum of Agreement, joining hands with the Gujrat government as a part of India’s lucrative Semiconductor programme.
Micron Technologies Signed A Major MoU with Gujrat Government Ahead of Semicon 2023
Micron Technologies creates memory chips for a wide range of electronics, including laptops, smartphones, electric vehicles, telecom equipment and more. They’re the 5th largest semiconductor manufacturer in the world, bringing great credibility to India – wherein they’re set to launch the country’s first semiconductor facility.
Due to the finance and incentive policies, the finance for this project is covered jointly by the Indian government, Gujrat government and Micron Technologies. It adds up to a whopping $2.75 billion – 70% of which will be paid by the two Indian governments.
Micron’s state-of-the-art facility is set to be established in Sanand, Gujrat with phased construction. Phase 1 of the facility’s construction will aim to construct 500,000 square feet of cleanroom space and is expected to be completed by the end of 2024, with Phase 2 planned to launch in the second half of the decade. Micron claims that it will generate 5000 direct and 15000 additional jobs in the technical sector of the Indian economy.
Vedanta and Foxconn Will Enter India’s Semiconductor Ecosystem Separately
Although the sudden pullout of Foxconn from their planned $19 billion joint venture with Vedanta was a disappointment for many, both companies mutually agreed to call things off. In the aftermath, both Vedanta and Foxconn have shared that their commitment to India’s semiconductor space is still strong.
The two companies are now on separate paths, with each looking to further their plans in the semiconductor space in India individually, alongside the best tech partners.
Vedanta’s New Application has been Submitted Already
Vedanta’s semiconductor and display program’s Managing Director, Akarsh K Hebbar, has already shared that they still plan to launch India’s first semiconductor and display fabrication plants in Gujrat’s Dholera Special Investment Region, for which they have been in agreements with various tech partners, including Innolux for the display fabs part.
The company claims that they have submitted a new application under the modified programme and are waiting for its review. Vedanta will be sharing an official announcement regarding their plans soon.
Foxconn To Further Strengthen Their Relationship with India
It has been reported that Foxconn, after backing away from the joint venture, is now working separately with the aim of setting up around four to five semiconductor fabs in India. They’re expected to submit a new application soon and have already looked for further opportunities in the manufacturing and semiconductor space in India.
Foxconn was reported to be in discussions with the Gujrat government to set up a semiconductor plant in the state.
The Taiwan-based company has also shared its aspirations of helping take the ‘Make in India’ initiative further. This includes setting up Foxconn setting up manufacturing plants for iPhone cases and partnering with Applied Materials to manufacture Semiconductor tools in South India’s Karnataka, with an AirPods manufacturing factory also in order.
The Indian Semiconductor Space is Expected to Grow Rapidly
With major players such as Micron, Vedanta, and Foxconn all actively involved in India’s semiconductor space, and many more expected to join soon, things are looking bright for India’s Semiconductor Mission. It’s ideal to stay on the edge of your seat and to stay up to date with this industry, as it shows great promise.