In an attempt and what could be the commencement of an era of India’s dominance in the world of tech, the government of India will offer $1 billion in cash to the companies willing to set up a semiconductor manufacturing unit in the country. This information has been shared by two anonymous government sources, they also shared that the government has assured these companies of buying chips from them.
To boost India’s electronic supply chain and further advance Prime Minister Narendra Modi’s Atmanirbhar Bharat initiative, official sources shared that the private firms will also be encouraged to buy locally made semiconductor chips. This can be looked at as a step in the direction of making India free of Chinese tech.
Currently, the world is majorly dependent on China and Taiwan for these chips. The two main semiconductor manufacturers in the world currently are the Taiwan Semiconductor Manufacturing Company and Samsung. Globally, automotive manufacturers are also facing a shortage of semiconductor chips and have halted production. Given the shortage of semiconductor chips, even PC parts went out of stock.
Every time an electronic device is claimed to be “Made In India”, it is just assembled in India with Indian companies sourcing silicon chips from foreign manufacturing firms. Silicon chips or semiconductor chips are the foundation units of any electronic device, be it a mobile phone, CPU, camera or any other such device. Everything inside these devices is based on silicon chips and as of now, India does not have the required capacity, fabricators and even an ecosystem to manufacture large-scale silicon chips.