India poised for semiconductor manufacturing revolution, says IT minister Ashwini Vaishnaw – Business Today
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Union IT and Telecom Minister Ashwini Vaishnaw announced on Friday that India is actively developing a comprehensive ecosystem to support the semiconductor sector, which includes offering dollar-for-dollar incentives for expenditures incurred by participants. Vaishnaw emphasised the significance of recent announcements made by leading semiconductor companies, AMD and Micron, regarding their involvement in India.
Micron Technology, a prominent player in the semiconductor industry, has revealed its plans to construct a new assembly and test facility in Gujarat. This state-of-the-art facility will facilitate the manufacturing of both Dynamic random-access memory (DRAM) and NAND products, meeting the increasing demand from both domestic and international markets.
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In addition to Micron’s investment, Applied Materials, a renowned semiconductor toolmaker from the United States, has committed to investing $400 million over the next four years in an advanced engineering centre in India. This decision was reached following discussions between Indian Prime Minister Narendra Modi and Gary Dickerson, the CEO of Applied Materials, during their meeting in Washington on Wednesday.
“Applied Materials is the leading designer and manufacturer of sophisticated equipment used in semiconductor industry. Decision to set up engineering centre in Bengaluru will help develop semiconductor ecosystem in India,” Vaishnaw said in a tweet.
Vaishnaw further mentioned that another major announcement related to semiconductor manufacturing can be expected within the next 12 months. He expressed his confidence in the progress being made, stating that the allocation of land has been practically finalised, the plant’s design has been nearly completed, and the selection of construction agencies is in its final stages. With this progress, he anticipates that production will commence within six quarters from now.
Vaishnaw highlighted Micron’s prominent position as a global memory manufacturer, affirming that a wide range of products in the memory value chain will be manufactured in India. While he couldn’t provide specific details on the capacity for each memory type, he projected that once the plant reaches full production capacity, it will generate an annual turnover of approximately one billion dollars.
Regarding other companies interested in establishing a presence in the semiconductor sector, Vaishnaw told CNBC-TV18 that Foxconn and Vedanta have been requested to resubmit their proposals. These proposals will be evaluated based on their fresh submissions, enabling a fair assessment of their potential contributions to the ecosystem.
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