Shillong, September 7: As India marches towards becoming the global semiconductor hub, industry experts on Saturday said the country could receive a massive up to $30 billion investment in the sector in the next three-five years which would further bolster its position in the supply chain worldwide.
On Thursday, the Maharashtra government approved four major projects totalling an investment of Rs 1.17 lakh crore, that includes a semiconductor manufacturing project to be jointly set up by Israel’s Tower Semiconductor and the Adani Group.
The project will be set up in Panvel, Raigad district with a proposed investment of Rs 58,763 crore in the first phase and another Rs 25,184 crore in the second phase, creating at least 15,000 jobs.
According to Prabhu Ram, VP-Industry Research Group, CyberMedia Research (CMR), India’s strategic investments in the semiconductor industry aim to bolster its domestic manufacturing capabilities and elevate its position within global supply chains.
“By expanding production capacity, the country is poised to become a major player in the sector. National initiatives, such as the Semicon India Programme and the India Semiconductor Mission, are focused on capturing a significant share of the global market, driving innovation, and stimulating economic growth through job creation and technological advancement,” Ram told IANS.
During Prime Minister Narendra Modi’s recent Singapore visit, both the countries announced a partnership to cooperate in the field of semiconductors.
Singapore and India will leverage complementary strengths in their semiconductor ecosystems and tap into opportunities to build resilience in their semiconductor supply chains. This will include government-led policy exchanges on ecosystem development, supply chain resilience, and workforce development.
PM Modi, accompanied by his counterpart Lawrence Wong, also visited AEM Holdings, a leading company in semiconductor and electronics sector, and discussed collaboration opportunities.
The Union Cabinet, chaired by PM Modi, has also approved the proposal of Kaynes Semicon Pvt Ltd to set up a semiconductor unit in Sanand, Gujarat, with an investment of Rs 3,300 crore that will produce nearly 60 lakh chips per day.
In March, PM Modi laid the foundation stone of three semiconductor projects worth Rs 1.25 lakh crore. As per reports, India’s semiconductor-related market will reach $64 billion in 2026, nearly triple the size in 2019. (IANS)