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India's Audacious Semiconductor Ambitions: Forging a Path to Technological Supremacy

Introduction: A Convergence of Fortuitous Circumstances

In the ever-evolving landscape of technological prowess, India finds itself at an opportune juncture, poised to capitalize on the burgeoning $750 billion global semiconductor industry. As this colossal sector prepares to undergo a seismic expansion over the next six to seven years, India stands uniquely positioned to harness its multifaceted advantages and emerge as a formidable player in the realm of semiconductor production.


Union Minister of Electronics & Information Technology, Telecom, and Railways Ashwini Vaishnaw at the Business Standard Manthan, in New Delhi on Wednesday (Photo: Kamlesh Pednekar/ BS)


Ashwini Vaishnaw, the esteemed Minister of Electronics & IT, Telecom, and Railways, articulated this profound opportunity during the Business Standard summit, BS Manthan. His words painted a vivid picture of India's inherent strengths, which coalesce to create an environment ripe for semiconductor dominance.


The Triumvirate of Propitious Factors

Three pivotal factors converge to bestow upon India an exceptional competitive edge in the semiconductor arena. Firstly, the nation boasts an abundant workforce, a veritable wellspring of talent poised to fuel the industry's growth. Secondly, India's burgeoning commitment to green energy production ensures a sustainable and eco-friendly approach to manufacturing. Finally, the country's flourishing chemical manufacturing ecosystem, exemplified by the industrial hub of Dahej, Gujarat, provides a robust foundation for the intricate supply chain requisite for semiconductor fabrication.


Vaishnaw eloquently encapsulated this trifecta of advantages, stating,

"We have also taken big strides in having clean energy. For our level of per capita income, the world is amazed that we have close to 42 percent of our power generation capacity in the green power. We have one of the largest chemical manufacturing ecosystems in the world in Dahej, Gujarat. There are very few countries with these kinds of competitive advantages."

The Clarion Call of Global Industry Giants

India's semiconductor aspirations have garnered resounding endorsement from the global industry's preeminent entities. Vaishnaw's engagement with top executives from 45 different multinational semiconductor companies yielded a unanimous consensus – India is the next frontier, an inevitable destination given the challenges plaguing the rest of the world.


The minister's words echoed the sentiments of these industry titans,

"Each one of them said the natural next destination will be India. They said given the challenges in the rest of the world, a move towards India is inevitable."

Synergizing Services and Manufacturing: A Holistic Approach

While some critics have advocated prioritizing services over manufacturing capabilities, Vaishnaw's perspicacious vision transcends such binary constraints. Given India's vast expanse and multifaceted potential, the question is not one of "either-or'' but rather a holistic embrace of both domains.


As India takes its inaugural stride towards establishing a chip fabrication plant, the government's stance is unequivocal: the nation must not differentiate between chip designing and manufacturing. This integrated approach underpins India's semiconductor strategy, aiming to cultivate a comprehensive ecosystem that encompasses the entire value chain.


The Vanguard of India's Semiconductor Renaissance

Two pivotal projects epitomize India's burgeoning semiconductor renaissance. The Tata Group's pioneering chip fabrication facility in Dholera, Gujarat, is slated to commence operations by December 2026, marking a watershed moment in India's technological evolution. Simultaneously, two additional plants in Gujarat's Sanand and Morigaon, Assam, are poised to assemble semiconductors, further solidifying India's foothold in this strategic domain. 


Vaishnaw expressed profound satisfaction at the establishment of India's inaugural chip fabrication plant in Dholera, hailing it as one of the most gratifying aspects of his tenure as a minister.


Striking a Harmonious Balance: Nurturing Services and Manufacturing

While India's foray into semiconductor manufacturing is undoubtedly a momentous undertaking, it does not signify a diminution of the nation's focus on the technology services sector. Vaishnaw underscored the government's unwavering commitment to both domains, recognizing their symbiotic potential as potent engines of employment generation.


"We will create a major policy framework for the GCCs which are set up here and build on that strength,"

he affirmed, adding,

"The focus of the government is equally on manufacturing as well as services because both of them are huge employment opportunities."

The Harbinger of a Manufacturing Renaissance

Vaishnaw's words hinted at a forthcoming policy impetus towards domestic manufacturing, a harbinger of India's burgeoning transformation into a product nation. He envisioned a future where deep-tech sectors would be the wellspring of Indian-designed and manufactured products, permeating every aspect of citizens' lives.


"India will become a product nation, and many of these products will be coming from deep tech sectors, and will affect every citizen's lives,"

Vaishnaw prophesied. His remarks underscored the tangible progress already underway, with Indian-designed and manufactured telecom radio equipment now being deployed in the United States and Europe.


The Paradigm Shift: Redefining Responsibility in the Digital Age

In the realm of global regulatory oversight of big tech and social media platforms, Vaishnaw heralded a seismic shift in the prevailing paradigm. The erstwhile construct of "safe harbor," which afforded these entities a degree of insulation, is no longer tenable in the face of evolving societal expectations.


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Vaishnaw drew a poignant parallel,

"Just like in your newspaper, you are actually taking care to make sure that no fake news gets published, the same kind of responsibility has to be taken by social media platforms. That is a global consensus that is forming."

The minister's words echoed a growing global consensus, with nations worldwide expressing concerns over the profound impact of social media on their societies. The United States has already implemented restrictions on access to social media platforms for children, a harbinger of broader regulatory measures to come.


India's Clarion Call for Thought Leadership

In the ever-evolving realms of 6G, artificial intelligence, and the broader technology domain, India's singular approach has been to establish itself as a global thought leader. This audacious vision underpins the government's comprehensive framework for the digital economy, a robust construct predicated on four pillars.


The Digital Personal Data Protection Act, 2023, and the telecommunication sector serve as the horizontal foundations, providing overarching guidelines and infrastructure that permeate all sectors. Complementing these is the forthcoming Digital India Act, which is currently undergoing consultations and is poised to be the third pillar of this framework.


Continuity and Transformative Change: Viksit Bharat 2047

As India contemplates the prospect of a third term in government, the wheels are in motion for an ambitious plan – Viksit Bharat 2047. This transformative vision aims to propel India into the ranks of developed nations by the year 2047, a testament to the nation's unwavering commitment to progress and prosperity.


"We have a roadmap for the next 25 years," Vaishnaw declared, underscoring the meticulous planning underpinning this audacious endeavor. The entire vision is woven around a central tenet: fostering sustainable and transformational change in the lives of Indian citizens. This lofty goal will be realized through a confluence of policy interventions, strategic investments, technological innovations, and a re-engineering of government processes.


The Path to Preeminence: Overcoming Obstacles and Embracing Opportunities

While India's semiconductor aspirations are undoubtedly ambitious, the road ahead is not without its challenges. Cost competitiveness, infrastructural constraints, and talent shortages have historically plagued the global semiconductor industry. However, India's proactive approach, characterized by strategic policymaking and nurturing of indigenous talent, positions the nation to overcome these obstacles and emerge as a preeminent force in the semiconductor arena.


Vaishnaw’s Field of vision

"I must have personally met about 45 companies, CEOs and CTOs. We asked them every detail needed to set up this new industry. There are over 250 chemicals and gases which go into semiconductor manufacturing. We have four units where the construction work is going on,"

Vaishnaw asserted, underscoring the government's meticulous preparations and commitment to fostering a comprehensive semiconductor ecosystem.


The minister's remarks resonated with the sentiments echoed by industry titans, who acknowledged India's potential to become a pivotal hub in the global semiconductor supply chain within the next decade. Presently, India's semiconductor ecosystem is on an upward trajectory, buoyed by strategic governmental policies, international collaborations, and a commitment to talent cultivation.


Concluding Exhortation: Seizing the Mantle of Technological Prowess

As India stands at the precipice of a technological revolution, the nation's audacious semiconductor ambitions serve as a clarion call to seize the mantle of technological prowess. By capitalizing on its inherent advantages, nurturing indigenous talent, and fostering an environment conducive to innovation, India is poised to emerge as a formidable force in the global semiconductor industry. This transformative journey promises to redefine the nation's economic landscape, propelling it towards a future where technological supremacy is not merely an aspiration but a tangible reality.

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