At the inauguration of SEMICON India 2024 in Greater Noida, Prime Minister Narendra Modi outlined India’s ambitious plans to expand its digital infrastructure and secure a significant position in the global semiconductor industry.
He emphasized the beginning of a new age of ‘Silicon Diplomacy,’ where India’s semiconductor ecosystem would not only solve domestic challenges but also contribute to addressing global issues. “India’s semiconductor ecosystem is a solution not just for India’s challenges but also for global challenges,” said Modi.
Chips as a Tool for Aspiration Fulfilment
During his address, Modi highlighted the unique significance of semiconductors in India, framing them as not only technological innovations but tools that help fulfill the aspirations of millions.
He noted that India, as one of the world’s largest consumers of semiconductors, has built a robust digital public infrastructure powered by these chips. “This small chip is doing big things to ensure last-mile delivery in India,” Modi said, referring to India’s success in leveraging digital tools such as UPI, RuPay cards, DigiLocker, and DigiYatra.
Resilience and Self-Reliance in the Digital Age
Modi recalled the COVID-19 pandemic, contrasting the stability of India’s banking sector with the collapse of major financial institutions worldwide. He attributed this resilience to the country’s advanced digital infrastructure and emphasized India’s increasing focus on self-reliance, particularly in manufacturing and data centers, as it undergoes a green transition.
“India is set to play a big role in driving the global semiconductor industry,” he stated, linking technological advancement with democratic values and warning against the dangers of detaching technology from these principles.
Strategic Global Partnerships and Policy Support
India’s growing influence in the semiconductor sector has been bolstered by its role as Vice Chair of the Indo-Pacific Economic Framework’s Supply Chain Council and its involvement in the QUAD Semiconductor Supply Chain Initiative.
Modi highlighted ongoing collaborations with key partners like Japan, Singapore, and the U.S., reaffirming India’s commitment to building a more resilient and reliable global supply chain. “Whether it is mobile manufacturing, electronics, or semiconductors, our focus is clear—we want to build a world that doesn’t stop or pause in times of crisis,” he said.
Investment and Workforce Development
India’s semiconductor ambitions are further supported by significant investments. Since announcing a Rs 76,000 crore incentive in 2021 to develop a semiconductor ecosystem, the country has seen the approval of several projects, including a chip fabrication unit in Dholera, Gujarat, and four chip packaging units in Gujarat and Assam, with a total investment of Rs 1.50 lakh crore.
In addition to infrastructure, Modi stressed the importance of developing a skilled workforce, revealing that India is preparing 85,000 technicians, engineers, and R&D experts to support the semiconductor industry.
Industry Leaders Back India’s Semiconductor Push
During a roundtable with semiconductor industry executives, Modi assured leaders of a stable and predictable policy environment, further encouraging them to invest in India. Industry heads, representing companies like SEMI, Micron, and Infineon, expressed appreciation for India’s commitment to the sector.
“This is the right time to be in India,” Modi told industry representatives. “In the 21st century, the chips are never down. When the chips are down, you can bet on India.” The Prime Minister’s vision for the future includes an Indian-made chip in every device across the world, as part of the ‘Make in India’ and ‘Make for the World’ initiatives.
