Finance
The Prime Minister, Shri Narendra Modi inaugurated SemiconIndia 2023 at Mahatma Mandir in Gandhinagar, Gujarat today. The theme of the Conference is ‘Catalysing India’s Semiconductor Ecosystem’. It showcases India’s semiconductor strategy and policy which envisions making India a global hub for semiconductor design, manufacturing and technology development.
Industry leaders expressed their views on the occasion. SEMI’s President & CEO, Shri Ajit Minocha, highlights India’s favorable alignment of geopolitics, domestic politics & private capacities for semiconductor production. PM lauds Micron’s historic investment, sets stage for others. Emphasizes leadership’s role in semiconductor ecosystem, sees India as next Asian powerhouse.
Mr Mark Papermaster, EVP and CTO AMD, recalled CEO AMD meeting with the Prime Minister at the White House recently. He announced that AMD will invest approximately 400 million dollars in the next 5 years. He said AMD will enhance its R&D capabilities. “We will build our largest design center in Bengaluru”, he said.
Dr. Prabu Raja, President of Semiconductor Product Group at Applied Materials, said that Prime Minister Modi’s strong vision positions India to play a central role in the global semiconductor industry. “We firmly believe that this is India’s time to shine”, he said. No company or country can overcome challenges in the sector alone. It’s time for collaborative partnership in this sector. This new collaborative model can provide us to be a catalyst in the sector, he emphasized. “I would like to thank you for considering us a valuable partner in India’s semiconductor vision”, he added.
Shri Anirudh Devgan, President and CEO Cadence said it is really good to see India finally investing into semiconductors. He expressed happiness that the government is investing in the entire ecosystem.
Shri Anil Aggrawal, Chairman, Vedanta Group said that experts feel that Gujarat is the right place for the silicon valley of India. He highlighted the Prime Minister’s vision of creating new opportunities for the youth of India. “We have seen how India has transformed in the last decade and aspirations of young Indians are really high.
Shri Sanjay Mehrotra, President and CEO of Micron Technology thanked the Prime Minister for the global vision to turn India into a global semiconductor hub. Mr Mehrotra expressed pride in the setting up of a semiconductor assembly and test facility for memory in the state of Gujarat and said that this project is going to create nearly 5,000 jobs along with 15,000 additional jobs within the community in the coming years. He thanked both the Central and State Governments for their support in setting up the semiconductor industry in the state. He also thanked the Prime Minister for his support in fostering an environment of innovation, business growth and social progress that is creating solid results. “Digital India and Make in India are creating a truly transformative energy that will continue to drive positive progress”, he further said.
Mr. Young Liu, Chairman of Foxconn, highlighted the buffalo spirit of the Taiwan Semiconductor Industry, stressing its applicability in India. Recognizing the Indian Government’s high ‘say-do’ ratio, he emphasized the significance of trust and collaborative efforts to overcome challenges, similar to Taiwan’s experience. Expressing confidence in India’s determination, he quoted the Prime Minister’s “IT stands for India and Taiwan” and assured Taiwan’s support as India’s trusted and reliable partner in the semiconductor industry.
Addressing the gathering, the Prime Minister emphasized that events like Semicon are like software update where experts and industry leaders meet and share with each other. “It is important for the synchronization of our relationship,” the Prime Minister said. Shri Modi who witnessed the exhibition set on the venue, expressed delight in the innovations and energy of the sector. The Prime Minister urged everyone, especially the younger generations to visit the ongoing exhibition and understand the power of the new technology.
Recalling the participation in the first edition of Semicon last year, the Prime Minister highlighted the questions raised at the time about investing in India in the semiconductor industry. He underlined that the questions have transformed over a period of one year from ‘Why invest in India’ to ‘Why not invest in India’. “There has been a directional change due to the efforts of the industry leaders”, Shri Modi said as he felicitated them for showing their belief in India. He said that the industry leaders have conjoined the aspirations and the capability of India with their own future and dreams. “India does not disappoint”, he exclaimed. Shri Modi underlined the abundance of opportunities in India of the 21st century and said that the country’s democracy, demography and dividend will double and triple the businesses in India.
Referring to Moore’s Law with exponential growth at its heart. He said that we are witnessing the same exponential growth in India’s digital and electronic manufacturing sector. He informed that India’s share in global electronic manufacturing has increased manifold. In 2014 India’s electronic manufacturing was less than 30 billion dollars, which has crossed 100 billion dollars today. The export of electronics and mobile devices has doubled in the last 2 years.
Throwing light on the technological developments in India post 2014, the Prime Minister informed that there were only two mobile manufacturing units in India before 2014 whereas today, this number has gone beyond 200. He also informed that the number of broadband users in the country increased from 6 crores to 80 crores while the number of internet connections rose from 25 crores to more than 85 crores today. Referring to these statistics, the Prime Minister emphasized that it not only signifies India’s progress but is also an indicator for growing businesses in the country. Shri Modi highlighted the crucial role of India in the semicon industry’s target of exponential growth.
“The world is witnessing the Industry 4.0 revolution today,” remarked Shri Modi, highlighting that people’s aspirations drive any industrial revolution. Drawing an analogy with the American Dream, he emphasized how Indian aspirations propel the development of India. Moreover, he mentioned a recent report showing a rapid decline in poverty and the rise of a neo-middle class in the country.
Noting the tech-friendly nature and the eagerness of the Indian people towards technology adoption, the Prime Minister said that cheap data rates, quality digital infrastructure and seamless power supply in the villages are burgeoning the consumption of digital products. “Be it health, agriculture or logistics, India is working towards a vision of smart technology usage”, Shri Modi said. He noted that there are people in India who may not have used a basic home appliance but are going to make use of interconnected smart devices.
Similarly, the Prime Minister said, a particular student population might not have used a bicycle before, but they are primed to use smart electric bikes today. “The growing neo-middle class of India has become the powerhouse of Indian aspirations”, the Prime Minister said. He underlined that the chip-making industry is a market filled with opportunities and expressed confidence that those who begin early are bound to get a first-mover advantage over others.
Referring to the side effects of the pandemic and the Russia-Ukraine war, the Prime Minister said that the world needs a reliable supply chain. “Who can be a more trusted partner than the world’s largest democracy”, he said. He expressed happiness about the growing global trust in India. “Investors trust India as it has a stable, responsible and reform-oriented government. The industry has faith in India as infrastructure is developing in every sector. The tech sector believes in India as technology is growing here. The Semiconductor Industry trusts India as we have a massive talent pool”, he said. “Skilled engineers and designers are our strength. Anyone who wants to be a part of the world’s most vibrant and unified market has faith in India. When we tell you to make in India, it also includes that let’s make for India, Make for the world”, he added.
The Prime Minister said that India understands its global responsibilities and is working on a comprehensive roadmap with friendly countries. That’s why India is building a vibrant semiconductor ecosystem. Recently, the government approved the National Quantum Mission and is also set to introduce the National Research Foundation Bill in Parliament. They are revamping the engineering curriculum to create a semiconductor ecosystem. They informed that they have identified more than 300 prominent colleges in India where courses on semiconductors will be available. The Chips to Startups Program will help engineers. “It is estimated that in the next 5 years, more than one lakh design engineers are going to be produced in our country. India’s growing start-up ecosystem is also going to strengthen the semiconductor sector”, he added.
Giving the analogy of a conductor and insulator where energy can pass through conductors and not through insulators, the Prime Minister said that India is ticking every checkbox to become a good energy conductor for the semiconductor industry. Noting the crucial requirement of electricity for this sector, the Prime Minister informed that India’s solar power installed capacity has increased more than 20 times in the last decade and a new target of 500 GW of renewable energy capacity has been set to be achieved by the end of this decade. He also touched upon major steps taken for the production of solar PV modules, green hydrogen and electrolyzers. He underlined that the policy reforms taking place in India will have a positive impact on the construction of the semiconductor ecosystem.
PM informed about the several tax exemptions that have come into effect for the new manufacturing industry. He highlighted the lowest corporate tax rate in India, along with faceless and seamless taxation processes. Additionally, there have been significant steps such as the abolition of archaic laws and simplification of compliances to increase the ease of doing business. Notably, special incentives for the semiconductor industry were also emphasized. Shri Modi stated that these decisions and policies reflect India’s commitment to rolling out the red carpet for the semiconductor industry. He further added that as India moves forward on the path of reform, new opportunities will be created, making India an excellent conductor for semiconductor investments.
The Prime Minister said that India understands the needs of the global supply chain, raw materials, trained manpower and machinery. “The sector in which we have worked closely with private players has touched new heights. Be it the space sector or geospatial sector, we have got excellent results everywhere”, the Prime Minister emphasized. He also informed about the critical decisions taken on the basis of feedback received. He talked about the increased incentive under the Semicon India Programme. Elaborated that now technology firms will be given 50 percent financial assistance to set up semiconductor manufacturing facilities in India. “We are continuously carrying out policy reforms to accelerate the growth of the country’s semiconductor sector”, Shri Modi said.
Reflecting on India’s G20 theme of ‘One Earth, One Family, One Future,’ the Prime Minister highlighted how the same spirit drives India’s goal to become a semiconductor manufacturing hub. He emphasized India’s intent to share its skill, capacity, and capability with the world for mutual benefit. Stressing on boosting India’s potential for Global Good and a better world, he welcomed participation, suggestions, and thoughts from all. Assuring full support, he recalled his address from the Red Fort and concluded by saying, “This is the time. This is the right time. Not just for India but the whole world.”
Chief Minister of Gujarat, Shri Bhupendra Patel, Union Minister for Electronics & Information Technology, Shri Ashwini Vaishnav, Union Minister of State for Electronics & Information Technology, Shree Rajeev Chandrasekhar, CEO of Cadence, Shri Anirudh Devgan, Chairman of Foxconn, Mr Young Liu, Chairman of Vedanta, Shri Anil Aggarwal, CEO of Micron, Shri Sanjay Mehrotra, CTO of AMD, Mr Mark Papaermaster and President of Semiconductor Products Group AMAT, Shri Prabhu Raja were present on the occasion.
Background
The theme of the Conference is ‘Catalysing India’s Semiconductor Ecosystem’. It aims to bring together global leaders from industry, academia and research institutions. It showcases India’s semiconductor strategy and policy which envisions making India a global hub for semiconductor design, manufacturing and technology development. SemiconIndia 2023 will witness the participation of representatives of major companies such as Micron Technology, Applied Materials, Foxconn, SEMI, Cadence, and AMD among others.
A semiconductor revolution is in the offing in India. Addressing the SemiconIndia Conference 2023. https://t.co/KhzIyPyxHt
— Narendra Modi (@narendramodi) July 28, 2023
Source:PIB
