‘India has Arrived on Semiconductor Scenario’: Piyush Goyal on Investment Amid PM Modi’s US Visit – News18

With three main American semiconductor firms asserting funding in India by signing memoranda of understanding (MoU) throughout Prime Minister Narendra Modi’s go to to the United States (US), Trade Minister Piyush Goyal mentioned that “India has arrived on the semiconductor scenario”.

India and the US have signed a MoU to determine the semiconductor provide chain throughout the India-USA fifth industrial Dialogue 2023, which may also help India realise its long-nurtured dream of changing into a hub of electronics items.

The Semiconductor Sub-Committee is a part of India-US efforts to extend private-sector cooperation within the space of semiconductors with a view to lowering their dependence on China and Taiwan. It is led by the Department of Commerce for the US facet and the Ministry of Electronics and Information Technology (MeitY) and the Ministry of Commerce and Industry for the Indian facet.

The chip-making trade is a highly-concentrated one, with the massive gamers being Taiwan, the U.S. and China.

Micron Technology Inc, with help from the India Semiconductor mission, will make investments greater than $800 million in direction of a brand new $ 2.75-billion semiconductor meeting and take a look at facility in India. Applied Materials will construct a semiconductor centre for commercialization and innovation in India to additional strengthen the semiconductor provide chain diversification. Lam Research will prepare 60,000 Indian engineers by means of its ‘Semiverse Solution’ to speed up India’s semiconductor training and workforce growth objectives.

Goyal, whose Department is main the subcommittee on semiconductor, on being requested when India can develop into a producing hub of semiconductor, mentioned: “R&D, testbeds, packaging, innovation, testing will gradually have end-to-end facility in India. We have Vedanta project, which is under implementation in Gujarat. My own engagement with these companies, Minister Ashwini Vaishnaw’s engagements as we met leaders from this industry, have been working, which is now culminating into a significant outcome.”

The Cybersecurity Administration of China said in May that Micron failed its security review and barred operators of key domestic Infrastructure from purchasing the biggest U.S. memory chipmaker’s products.

Goyal, on being asked how he looks at China banning Micron and India becoming the next favourite destination for the company, said: “India has arrived on the semiconductor scenario. India will be a market of $100 billion by 2030. We have potential, demand, credibility and friendship.”

Since 2020, there has been a major supply shortage of semiconductors across the globe with no end in sight. As almost all modern devices and electronic require semiconductors, many industries are struggling to meet strong consumer demand. Global companies are exploring India as a viable investments destination for semiconductors. The country is positioning itself as among the most attractive destinations in Asia for electronics and semiconductors.

The India semiconductor market was valued at USD 27.2 billion in 2021 and is predicted to develop at a wholesome CAGR of practically 19 p.c to succeed in USD 64 billion in 2023. But none of those chips are manufactured in India.