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Semiconductors power modern innovations, especially AI and machine learning, by enabling high-speed data processing, efficient storage and enhanced device performance
India’s semiconductor market is projected to grow to US$80 billion by 2026. (Representative/AP)
In a significant move to boost India’s semiconductor industry, the Narendra Modi government announced on Wednesday the establishment of a new semiconductor unit in Jewar, Greater Noida, Uttar Pradesh.
This marks the sixth semiconductor unit approved under the India Semiconductor Campaign, with the new facility being a joint venture between HCL and Foxconn. Union Minister Ashwini Vaishnav stated that production at the unit will commence this year.
What Are Semiconductors
Semiconductors, typically silicon chips, are crucial components in modern electronics, powering devices such as computers, laptops, smart TVs, mobile phones, vehicles, electronic and electric gadgets, digital cameras, communication equipment, trains, ATM cards and numerous other gadgets. These chips manage the control and memory functions of electronic products, forming the backbone of electronic circuits. They act as the basic building blocks of electronic circuits and can contain billions of microscopic switches on a chip smaller than a fingernail.
Where Are They Used
The importance of semiconductors extends to various high-tech features in mobile phones and vehicles, including heads-up displays, sensors, communication systems, high-efficiency engine elements, driver assistance, parking cameras, blind spot detection, airbags, and emergency braking systems. The automotive industry, in particular, relies heavily on semiconductors, making their role indispensable.
Semiconductors are crucial in today’s technology-driven world, with widespread demand across nearly every industry. They play a vital role in powering modern innovations, especially in artificial intelligence and machine learning, by enabling high-speed data processing and efficient storage. As a result, the semiconductor industry is poised to significantly boost economic growth due to its universal applications and critical importance.
Decrease In Supply After 2020
Global demand for semiconductors has surged, especially since 2020, as nearly all modern equipment and electronic devices rely on them. Despite high demand across various industries, supply has struggled to keep pace, leading to a significant global shortage. In response, leading semiconductor companies are increasingly viewing India as a promising investment destination. Developing a strong semiconductor manufacturing sector in India is expected to drive economic growth, reduce reliance on foreign suppliers, and strengthen national security.
Manufacturing In India
The Indian government has introduced substantial incentives to attract semiconductor manufacturing. Major companies such as Tata, Vedanta, and Adani are preparing to enter the sector. Prime Minister Narendra Modi has made chip manufacturing a key pillar of India’s economic strategy, aiming to usher in a new era of domestic semiconductor production. To achieve this, the government is actively inviting global companies to invest in India. With these efforts, India is positioning itself to become a major hub for semiconductor manufacturing in the near future.
Semiconductor Market In India
India’s semiconductor market is expanding rapidly. Valued at US$27.2 billion in 2021, it grew by approximately 19% annually to reach US$64 billion in 2023. It is projected to grow further to US$80 billion by 2026 and is expected to reach US$110 billion by 2030. This booming demand has made semiconductors a global priority. However, despite the growing market, India currently does not manufacture semiconductors domestically.
Top Semiconductor-Producing Countries
Globally, Taiwan, South Korea, and the United States lead in semiconductor production. Taiwan manufactures over 60% of the world’s chips, while South Korea boasts advanced chip production through companies like Samsung Electronics. The US remains a significant player with major firms like Intel, AMD, and Nvidia. China and Japan are also notable contributors to the semiconductor industry, with China aggressively expanding its market share.
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