Union Telecom and IT Minister Ashwini Vaishnaw Unveils Semiconductor Manufacturing Plans

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New Delhi: The establishment of the country’s first inaugural electronic chip manufacturing plant is anticipated to be in place within a year, expects the Union Telecom and IT Minister Ashwini Vaishnaw.

The government initially allocated a $10 billion incentive for creating a semiconductor manufacturing ecosystem in the nation, which includes a wafer fabrication facility. Wafer fabrication plants serve as the foundational element for producing physical chips utilised in advanced electronic devices.

“We are focussing on some niche areas where we can take global leadership. Telecom and EV (electric vehicles) have emerged as a big segment for semiconductors,” Vaishnav told media sources. He believes that by concentrating on the development and production of chips required for these industries, India can emerge as a global leader in these domains.

He emphasised that the ongoing efforts are directed towards these sectors. “We should have some good success in the coming months. It will be fab (wafer fabrication), design, manufacturing, complete (ecosystem),” Vaishnaw said.

When questioned about the timeframe for this development, the minister indicated that significant progress would be seen in the near future, and although it might not be accomplished within a year. He credited the investment by US-based storage chip manufacturer Micron in India as the reason for a boosted global confidence in the country.

Micron recently started the construction of a semiconductor assembly plant in Sanand, Gujarat with plans to invest $2.75 billion (around Rs 22,540 crore). Micron’s investment of up to $825 million will be carried out in two phases, with a portion of the investment coming from the central and state governments. Furthermore, the minister informed that component suppliers of Micron are actively collaborating with the state government to identify suitable land for their operations.

The government has set a clear timeline for the commercial rollout of the first indigenous chipsets by 2023-24, as part of the Digital India RISC-V program. Notably, IIT Madras and the Centre for Development of Advanced Computing (CDAC) have already developed two microprocessors, Shakti (32-bit) and Vega (64-bit), using open-source architecture. These initiatives fall under the aegis of the Microprocessor Development Programme of the Ministry of Electronics and IT.

Vaishnaw also revealed that the government’s focus is on developing 4-5 key components where India can become a global hub, catering to both domestic needs and international export demands.