Unified action needed to make India hub of the semiconductor industry: ICEA

Business Thursday 25/April/2024 16:25 PM
Unified action needed to make India hub of the semiconductor industry: ICEA

New Delhi: India Cellular & Electronics Association (ICEA) has unveiled a report to position India as a global leader in the semiconductor product design and IP creation.

"As we navigate through a transformative era in electronics manufacturing and hi-tech technology, India stands at a pivotal juncture to redefine its role in the semiconductor value chain. Our report is not just an analysis but a call to action for India to seize unprecedented opportunities and navigate challenges with strategic foresight" said Pankaj Mohindroo, Chairman, ICEA.

The report outlines a strategic blueprint for India's semiconductor sector. It also highlights the challenges and opportunities facing India's semiconductor industry amidst evolving global geopolitics.

The report recommends a robust design ecosystem for India's semiconductor industry, advocating for strategic support for semiconductor design firms, bridging the skill gap through industry-oriented curricula and training programs, and enhancing funding mechanisms to support semiconductor design ecosystem.

The report also underscores the importance of leveraging global opportunities, particularly in advanced semiconductor manufacturing, and advocates for government investment in refurbished fabs to support semiconductor design firms and foster a skilled semiconductor workforce.

Mohindroo concluded by emphasizing the need for unified action across government, industry, and academia to propel India into a leadership position in the global semiconductor arena.

Recently the Union Cabinet approved the establishment of semiconductor units in Gujarat and two ATMP facilities, one in Gujarat and the other in Assam.

On March 13, Prime Minister Narendra Modi laid the foundation stones for three new chip plants - two in Gujarat and one in Assam.

Tata Group is setting up two of these three plants. These three plants will have an investment of about Rs 1.25 lakh crore. The semiconductor industry in India is still at a nascent stage, with various local and multinational companies intending to tap its vast potential. Tata Group hopes that the commercial production of semiconductors chips at the two plants - in Gujarat and Assam, would start in 2026.

Chip shortages during Covid highlighted the importance of indigenous manufacturing to fill the deficiency for national security and also to galvanise indigenous innovation.

These developments are part of the comprehensive 'Development of Semiconductors and Display Manufacturing Ecosystems in India' initiative which enhances India's semiconductor manufacturing capabilities and affirm the nation's commitment to securing a prominent position in the global semiconductor landscape.