India can become a hub for semiconductor design, engineering Research & Development solutions in five to seven years, says the junior minister for skill development and entrepreneurship, and electronics and information technology Rajeev Chandrasekhar. He said India also has potential in electronic manufacturing services.
Addressing Microsoft’s Future Ready conference, the minister said there is a whole new layering of opportunities on top of what their core capabilities were over the last 15 to 20 years. “There is a tremendous amount of opportunity in the world for trusted manufacturing and trusted partners in their value chain.”
The Union Cabinet, in December 2021, approved a Rs 76,000 crore scheme to boost semiconductor and display manufacturing capabilities. The Vedanta Group, in the same month, announced plans to invest $15 billion on display and semiconductor manufacturing in India across five to 10 years through Avanstrate Inc.
Moreover, reports in November stated that the Tata group has been in discussions with various states to buy land to build a chip assembly and test unit estimated to be worth $300 million. The Indian semiconductor market, as per government estimates, was worth Rs 1.13 trillion in 2020. It is expected to reach Rs 4.73 trillion by 2026.
Chandrasekhar noted that India is adding two unicorns every month when the world has still not gotten over the COVID-19 pandemic. “It tells you the kind of energy and potential and passion that exists in India today to grow,” he said. “India had tripled its electronics production over the past four years, while many in the industry were skeptical that they had missed the train.”
The minister added that this is the Y2K moment for the Indian digital space. “The next four to five years present a huge opportunity to do a step function jump.”