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India makes strides in semiconductor industry: First plant and growing opportunities

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Shillong, September 25: In just 15 months, India has achieved the remarkable feat of establishing its first semiconductor plant, along with receiving numerous manufacturing proposals and witnessing the emergence of eight chip designing startups, as revealed by Rajeev Chandrasekhar, Union Minister of State for Electronics and IT.

Speaking to IANS, the Minister highlighted the immense potential in semiconductor manufacturing, an area at the forefront of engineering and science/technology. He emphasized that investments in this field will flow to states that can respond quickly while creating a conducive environment, necessary infrastructure, and supportive policies.

Chandrasekhar cited the transformation in mobile manufacturing, noting that in 2014, India had zero mobile exports. Today, the country exports Apple and Samsung smartphones worth Rs 1 lakh crore. He emphasized that this transformation is why Prime Minister Narendra Modi envisions India as a semiconductor nation.

India used to import 82 percent of mobile phones in 2014, but now 100 percent of smartphones are either manufactured or assembled in the country.

Looking ahead, the Minister expressed confidence that as the journey with the Micron plant begins, more positive data on semiconductors will emerge. The state-of-the-art Micron plant in Sanand, Gujarat, is expected to become a beacon for investors, manufacturers, and participants in the global semiconductor ecosystem.

Notably, the chip for the ISRO-created GPS navigation system, NavIC, integrated into the Apple iPhone 15 Pro series, was designed by Bengaluru-based Accord Software and Systems. Over a million NAVIC IC chips have been produced using advanced 28-nanometer technology. The government plans to mandate that all devices using GPS technology incorporate NAVIC-powered chipsets or NAVIC chips.

Chandrasekhar also mentioned that the government’s IT PLI scheme includes incentives for system designers and manufacturers who incorporate Indian-designed chips into their products.

The first India-made chip from the Rs 22,500 crore Micron plant is expected to be available by December 2024. The Assembly, Test, Marking, and Packaging (ATMP) facility of the company is being set up on a 93-acre site in the Sanand GIDC-II industrial estate and is anticipated to be commissioned within 18 months. This facility will focus on transforming wafers into Ball Grid Array (BGA), integrated circuit packages, memory modules, and solid-state drives.

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