Microchips, also known as semiconductors or integrated circuits (ICs), are the foundational technology behind the digital age. They power everything from smartphones and computers to automobiles and industrial machinery. As the world increasingly depends on digital technology, the demand for advanced microchips has surged, making the semiconductor industry a critical component of the global economy. India, known for its robust IT services sector and a rapidly growing economy, has long aspired to establish itself as a ...
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Microchips, also known as semiconductors or integrated circuits (ICs), are the foundational technology behind the digital age. They power everything from smartphones and computers to automobiles and industrial machinery. As the world increasingly depends on digital technology, the demand for advanced microchips has surged, making the semiconductor industry a critical component of the global economy. India, known for its robust IT services sector and a rapidly growing economy, has long aspired to establish itself as a significant player in the global technology landscape. However, the country has historically lagged in semiconductor manufacturing, relying heavily on imports to meet its domestic demand. Recognizing the strategic importance of self-reliance in this critical industry, the Indian government has launched numerous initiatives aimed at developing a domestic semiconductor ecosystem. The journey of microchip manufacturing in India can be traced back to the early 21st century, with sporadic attempts at establishing semiconductor fabrication plants, commonly known as fabs. However, these efforts faced numerous challenges, including high capital costs, insufficient infrastructure, and a lack of skilled manpower. Despite these obstacles, the vision of a self-reliant semiconductor industry persisted, driven by the need to support India's burgeoning electronics and information technology sectors. In the last decade, there has been a renewed focus on building a comprehensive semiconductor ecosystem in India. The government has announced several policy measures, including financial incentives, to attract investment in semiconductor manufacturing. Initiatives like the "Make in India" campaign and the "Atmanirbhar Bharat" (Self-Reliant India) mission have emphasized the importance of developing domestic capabilities in high-tech manufacturing sectors, including semiconductors. In 2021, the Indian government launched the Production Linked Incentive (PLI) scheme for the electronics and semiconductor industries, aiming to boost local production and attract global players. This scheme, along with other measures such as the establishment of semiconductor research and development centers, has started to create a more conducive environment for the growth of the industry. Emerging technologies such as artificial intelligence (AI), 5G, the Internet of Things (IoT), and quantum computing rely heavily on advanced semiconductors. India's ambition to become a global leader in these fields necessitates a strong domestic semiconductor industry. Local manufacturing can accelerate the development and deployment of these technologies, fostering innovation and maintaining competitiveness in the global technology landscape.
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