PM Modi pitches India to chip makers, talks of supply chain resilience

Prime Minister Narendra Modi on Wednesday said resilience of supply chains is critical for the economy as he made a pitch to boost investments in domestic manufacturing of semiconductors -- the foundation of everything from smartphones to EV and AI. Speaking at the SEMICON 2024 conference on the outskirts of the national capital, the Prime Minister said the Covid pandemic showed the importance of the supply chain and underscored the need to act to ward off any disruption. "Whether it was Covid or war, there hasn't been a single industry to remain unaffected by supply chain disruptions," he said.

Stressing the importance of a resilient supply chain, the Prime Minister expressed pride in India's central role in building resilience across sectors, positioning the country as a key player in the global mission to safeguard supply chains. "Resilience of the supply chain is very important," he said. "India is working to create the same in different sectors of the economy." A halt in flights, factory shutdowns in China, and surges in demand for specific products broke supply chains during Covid-19. One of the sectors impacted was chips that form a critical part of every electronic device. Prime Minister showcased India's reformist regime, stable policies and a market that has tasted technology to make a strong pitch for investments in semiconductor manufacturing.

"This is the right time to be in India. You are at the right place at the right time," he said. "In 21st-century India, the chips are never down." He went on to state that India of today assures the world, "When the chips are down, you can bet on India." "Whether it is mobile manufacturing, electronics, or semiconductors, our focus is clear - we want to build a world that doesn't stop or pause in times of crisis but keeps moving forward," he said. As the US-China trade war threatens to make chip imports even more expensive, countries around the world are investing aggressively to build domestic supplies of semiconductors - the foundation of everything from smartphones to electric cars and artificial intelligence (AI). With its semiconductor market expected to touch USD 63 billion by 2026, India has created a Rs 76,000 crore program to woo chipmakers and their suppliers and cut dependence on countries such as Taiwan for imports to meet current requirements.

That programme has drawn nearly Rs 1.5 lakh crore of investment in producing about 70 million chips per day. Tata is partnering Taiwan's Powerchip Semiconductor Manufacturing Corp to set up India's first chipmaking plant worth Rs 91,526 crore in Gujarat's Dholera. Its unit Tata Semiconductor Assembly and Test Pvt Ltd is also investing Rs 27,120 crore to set up a unit in Assam. US memory maker Micron Technology Inc is also setting up a Rs 22,516 crore assembly facility in Gujarat, while Adani Group plans to build a chip plant in Maharashtra with Israel's Tower Semiconductor at a cost of Rs 83,947 crore. Also, CG Power is partnering with Japan's Renesas Electronics Corp and Thailand's Stars Microelectronics for a Rs 7,584 crore chip packaging plant in Gujarat.

"India's semiconductor sector is on the brink of a revolution, with breakthrough advancements set to transform the industry," Modi said, adding the country's chip industry is equipped with special diodes where energy flows in both directions. "Today's India inspires confidence in the world... When the chips are down, you can bet on India," he said. Modi said while the country's contribution to the world of designing is 20 per cent, India is creating a semiconductor workforce of 85,000 technicians, engineers and R&D experts.