India to produce semiconductor chip in 2024

Very soon India will join the list of the few nations where semiconductor chips are produced.

Union railway, IT, electronics and telecom minister Ashwini Vaishnaw made this announcement at a press conference.

The minister told the reporters that Micron technology’s Gujarat plant would produce first ‘Made in India’ semiconductor chip in December, 2024. US based micron technology had recently announced to set up its first semiconductor plant in Gujarat.

Vaishnaw said that this plant was a modern plant and would contribute to the expansion of the semiconductor ecosystem in India.

Micron is the fifth largest company in the world in the manufacturing sector of semiconductors which are used in mobile phones, laptops, servers, defense equipment, cameras, electric vehicles, trains, cars and telecom equipment.

The endeavour would result in generating 5000 direct jobs and 500 new high and engineering jobs for the youths of the country, according to the minister of state for electronics and information technology, Rajeev Chandrashekhar. “India has also progressed in the semiconductor industry in last 18 months. American Company’s investment will help in the growth in startups” he further said.

To encourage the production of semiconductor, Indian government had also announced Production Linked Incentive (PLI) scheme. Global companies are looking to India as an investment destination for semiconductor production. The value of Indian semiconductor market stood at $27.2 billion in 2021 and it has been increasing at a rate of 19% yearly. It may touch $64 billion in 2026.