The Minister of State for Electronics and IT, Rajeev Chandrashekhar in a statement on Monday said that India will make use of semiconductors worth about $70 to $80 billion to manufacture electronic products worth more than $300 billion by the year 2026 as visualised in the government's vision for the sector. He further informed that the government is focused on establishing a semiconductor ecosystem in the country as it has been receiving voluminous attention from around the globe.
Future of Semiconductor Market in India
According to a report from PTI, the minister stated that the demand for digital devices and electronic products is constantly rising and the government has announced a target of $300 billion in electronic manufacturing which can also be seen in the government’s electronic vision document. He stated that based on the $300 billion electronics production target by the year 2026, the consumption for semiconductors will be around $ 70 to $80 billion.
The Minister of State for Electronics and IT was speaking on the evening of the announcement of the first conference that will focus on establishing a semiconductor ecosystem in India. The government of India will be organising Semicon India 2022 in Bengaluru from April 29 to May 1. The conference will be virtually inaugurated by Prime Minister Narendra Modi as informed by Ministry of Electronics and IT joint secretary Amitesh Sinha. Rajeev Chandrashekhar also informed that he is looking forward to signing several memorandums of understanding with leading companies in the semiconductor space during the conference.
The Indian government has previously received proposals from five companies interested in setting up semiconductor and display factories in India by making a cumulative investment of $20.5 billion which is roughly around Rs 1.53 Lakh Crore. The government had previously announced the decision to allocate Rs 76,000 crore outlay for the semiconductors and display manufacturing segment which will help boost their production in the country.
The companies which have submitted proposals to set up electronic chip manufacturing plants include a joint venture of Vedanta Foxconn, IGSS ventures and ISMC. A release from the IT ministry informs that these companies are looking to make an investment of $13.6 billion and are seeking $5.6 billion support from the centre via the Rs 76,000 crore incentive scheme.