Workers assemble smartphones at the Dixon Technologies factory in Uttar Pradesh, India, Thursday, January 28, 2021.
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Ashwini Vaishnaw, India’s Minister of Electronics and Information Technology, Railways and Communications, said that India hopes to become one of the world’s top five semiconductor producers in the next five years.
Vaishnaw told CNBC’s Street Signs Asia program on Friday that the chip industry “is a very complex market, and the global value chain and global supply chain are extremely complex in the current context.” “We think within the next five years we will be among the top five semiconductor countries in the world.”
As of December, Taiwan accounted for about 46% of global semiconductor foundry capacity, followed by China (26%), South Korea (12%), the United States (6%) and Japan (2%), according to market intelligence firm data. Trend power.
With U.S.-China tensions showing no signs of ending soon, India stands to benefit as more companies look to reduce their dependence on China.
He said India sees itself as a “trusted value chain partner” for manufacturers of electronic equipment, industrial and defense electronics, and power electronics – “almost every electronics manufacturer needs to design… and manufacture semiconductors.”
“Some people call it ‘friend outsourcing’. I call it ‘trust underpinning’ because there is global trust in India,” Vishno said.
On Thursday, U.S. chip giant Qualcomm Opened one New design center in chennai. The factory will focus on wireless technology design and create 1,600 jobs in the country.
“We started investing in India before it became popular. We have been building our presence in India for over a decade.” Qualcomm CEO told CNBC affiliate CNBC TV-18. “Many of our chips are designed in India, and our presence in India creates opportunities for many Indian companies.”
Last week, Prime Minister Modi Three semiconductor factories completed. One of the factories is a joint venture between Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Company. PSMC Chairman Frank Huang told reporters economic times Aims to manufacture India’s first semiconductor wafers by 2026
Union Minister Rajeev Chandrasekhar said in a statement: “Chips made in India will help India occupy a strong and important position in the global value chain, which will make India the semiconductor leader of the world. center.” Press release.
When asked about investor concerns that India is still lagging behind in semiconductor manufacturing and has a lot of work to do, Vaishnaw seemed unfazed.
The minister predicts that the global semiconductor industry will be worth $1 trillion within the next seven years. Due to the large talent pool and the country’s emphasis on improving manufacturing capabilities.
“This growth will require close to a million semiconductor engineers. Where is the talent pool? Where is the ecosystem to handle such complexity? It’s in India,” he said.
The minister added: “This was absolutely the best time to enter the semiconductor industry and we quickly gained the confidence of the entire global industry.”
Apple supplier Foxconn, known as Hon Hai Precision Industry, In November it announced plans to invest more than $1.5 billion in India to meet its “operational needs.”
“Globally, all companies are looking at India as a natural destination for their next investment decision,” claimed Vaishnaw. recent reports The government is reviewing semiconductor proposals totaling $21 billion.
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