Global chip equipment firms eye manufacturing expansion in India under SEMICON 2.0, says MeitY Secretary
New Delhi, July 28
Several of the world's largest semiconductor equipment manufacturers are showing interest in expanding their presence in India and setting up manufacturing facilities under SEMICON 2.0, according to S Krishan, Secretary, Ministry of Electronics and Information Technology.
Krishan said companies that had participated in the earlier phase of India's semiconductor programme, as well as those that already have research and development centres in the country, are looking to expand their footprint into manufacturing.
"Some of the largest companies in the world in semiconductor equipment manufacturing are interested in expanding their presence in India and establishing manufacturing facilities," Krishan said, adding that these facilities could supply upcoming semiconductor manufacturing units in India as well as other global markets.
He, however, declined to name individual companies, saying that formal announcements would need to be made before identifying them.
The key shift under SEMICON 2.0, according to Krishan, is its move from a manufacturing-focused approach to a complete semiconductor ecosystem approach.
While the first phase primarily focused on semiconductor manufacturing through ATMP (Assembly, Testing, Marking and Packaging) facilities, SEMICON 2.0 will bring a wider set of activities under the programme.
This includes semiconductor manufacturing equipment, materials, gases and chemicals, along with greater emphasis on the design ecosystem.
Krishan said the expanded approach is expected to bring more global companies into India, including firms that already have a presence in the country through R&D centres and are now considering manufacturing expansion.
The comments come as India prepares for the third edition of its international semiconductor event, SEMICON 3.0, where the government expects the entire semiconductor value chain to be showcased -- from manufacturing to the eventual use of chips.
The MeitY Secretary said the announcement of ISM Phase 2 and the interest already being shown by companies in India's semiconductor sector could lead to significant participation by major global firms and potentially result in important announcements at the event.
— ANI
Reader Comments
Good to see the government learning from Phase 1 and expanding the scope. The earlier focus on just ATMP was too narrow - you can't build a semiconductor industry without the materials, chemicals, and equipment ecosystem. But I hope we see actual tangible announcements at SEMICON 3.0, not just expressions of interest. The world is watching, and India needs to move fast for it to be a serious player. 🤞
As someone working in the semiconductor industry, I've seen firsthand the supply chain bottlenecks. India's move to create a complete ecosystem from equipment to design is visionary. The global chip equipment firms are right to be interested - India offers a large talent pool, growing domestic demand, and potential for cost-effective manufacturing. Let's hope the execution matches the ambition.
This is very promising news! 🎉 The mention of materials, gases, and chemicals alongside equipment is key - we often forget these ancillary industries boost local employment and create entire supply chains. I just hope the government also focuses on skilling the workforce for these specialized roles. A fab facility is only as good as the people running it.
Great initiative, but I'm cautiously optimistic. We've heard similar announcements before, and while SEMICON 2.0 is a positive step, the proof will be in the actual investment numbers. The government needs to ensure policy stability, easy clearances, and land availability. Also, why no names yet? Companies often make such statements to gauge government support. Let's wait for firm commitments.
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