India has 12 semiconductor units with $20 billion investment, Semicon 2.0 to drive next phase: Vaishnaw
New Delhi, August 2
India's semiconductor manufacturing ecosystem is entering its next phase with 12 semiconductor units involving around $20 billion in investment, three of which have already started manufacturing chips, Union Minister for Electronics and Information Technology Ashwini Vaishnaw has said.
Highlighting the progress made since the launch of the Semicon India programme in 2022, Vaishnaw said the government had learnt from previous attempts and focused on establishing a clear policy framework and stronger execution.
"2022: We started Semicon India. Learnt from past attempts. Clear policy and execution," Vaishnaw said in a post on X on Saturday.
According to the minister, the semiconductor push has now resulted in 12 units with a combined investment of $20 billion. Three of these units have already begun making chips, marking a shift from policy and project approvals towards actual semiconductor production in India.
Vaishnaw also highlighted the recent approval of Semicon 2.0, signalling the government's intention to build on the progress achieved under the first phase of its semiconductor programme.
"2026: 12 semiconductor units with $20 billion investment. 3 units already making chips. Semicon 2.0 approved. and we are just getting started...," he said, responding to a post which mentioned that AMD wanted to Make India its Semiconductor Manufacturing Hub and was investing USD 3 billion in a Fab in India back in 2005 but it fell apart due to roadblocks.
India is taking steps to come up as a major semiconductor manufacturing and technology hub, reducing vulnerabilities associated with dependence on overseas supply chains. Semiconductor chips are critical inputs for automobiles, smartphones, electronics, telecommunications equipment, defence systems and a growing range of emerging technologies.
With Semicon 2.0 now approved, the government is expected to focus on expanding manufacturing capacity and deepening India's semiconductor ecosystem. The next phase will be crucial in determining whether the initial investments can translate into a broader, globally competitive chip manufacturing base.
— ANI
Reader Comments
Impressive numbers, but let's see if this translates into real global competitiveness. The AMD example from 2005 shows we've been here before. Semicon 2.0 needs to focus on building a complete ecosystem - design, fabrication, packaging, and skilled workforce - not just counting investments.
This is what Make in India should have been about from the start! Chips are the new oil, and we're finally positioning ourselves properly. With the global chip shortage still affecting supply chains, this timing couldn't be better. But we need to ensure we're not creating a dependency on foreign tech for these fabs.
Good initiative but I'm cautiously optimistic. The real test will be whether these units can compete with Taiwan and South Korea on quality and cost. India has the talent, but we need consistent policy over the next 10 years, not just announcements. Hopefully the government keeps the momentum going.
For the first time, we're seeing real chips being made in India! The Semicon 2.0 approval is encouraging. However, we need to address the skill gap - semiconductor manufacturing requires highly specialized training. Are our universities and institutes ready to produce the workforce needed for these fabs? That should be a priority.
A step in the right direction, but the government must ensure these investments are not just for show. The fact that AMD's $3 billion investment fell apart in 2005 should serve as a lesson - bureaucratic delays and infrastructure issues must be resolved quickly. Otherwise, foreign companies will lose confidence again. 🤞
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.