India’s chip ambitions: 16 fabs in 5 years

Latest update time：2024-03-11

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Source : Content compiled from livemint by Semiconductor Industry Observer (ID: icbank), thank you.

The Indian government plans to increase incentives for the chip industry from the current Rs 76,000 crore as chip factories and testing units are expected to mushroom in the country in the coming years.

IT Minister Ashwini Vaishnaw said in an interview that India will become one of the top five semiconductor ecosystems in the world within the next five years. The minister said this would be backed by investments from global giants who are increasingly looking at setting up manufacturing or other units in India.

“In the next five years, India is expected to add approximately 4-6 wafer fabs, 6-10 compound semiconductor wafer fabs, 1-2 display wafer fabs and 8-10 ATMP fabs. The entire design, wafer The factory and ATMP value chain will be established in Bharat. In the next five years, Bharat will become one of the top five semiconductor ecosystems in the world," said Vaishnaw, who also heads the telecom and railway businesses.

ATMP refers to the assembly, testing, monitoring and packaging of semiconductor chips, while a fab is a manufacturing unit that manufactures wafers used to produce integrated circuits or semiconductor chips.

"With the huge success achieved in a very short period of time, we will be working on India Semiconductor Mission 2.0 in the coming months. Yes; more funds are needed to advance the semiconductor initiative," he added. India Semiconductor Mission is the nodal agency for implementing India's $10 billion semiconductor manufacturing plan.

On March 1, the Union Cabinet approved three chip industry projects with an estimated investment of 1.26 trillion rupees, of which the Tata Group took the lead in two of the projects. Tata and Taiwan Powerchip Semiconductor Manufacturing Ltd will build a Rs 91,000-crore semiconductor plant in Dholera, Gujarat, while Tata Semiconductor Assembly and Test Private Ltd will build a Rs 91,000-crore semiconductor plant in Dholera, Gujarat factory. In addition, CG Power Pvt Ltd. will invest 76 billion rupees together with Japan's Renesas Electronics to build an ATMP factory in Sanand, Gujarat. Last year, the US company Micron started construction of an ATMP plant in Sanand, Gujarat. All projects combined require an investment of about 1.48 trillion rupees.

"Our Prime Minister has asked us to prepare a 20-year roadmap. Therefore, the India Semiconductor Mission is ready to develop the semiconductor industry in an orderly manner over the next 20 years. The focus is on developing the entire ecosystem of India," he said.

Vaishnaw said the new equipment would be approved at the same pace as U.S.-based Micron, which plans to deliver the first batch of packaged chips from its Sanand plant by the end of the year. Plans were approved mid-last year and ground was broken in September.

“The speed with which Micron got all the approvals and started construction has given a lot of confidence to the global semiconductor industry. The three projects now approved will also demonstrate the same pace. Global semiconductor companies are now seriously considering India as the next one for semiconductor investments destination," he added.

Regarding the Rs 10,372-crore Indian Artificial Intelligence Mission approved by the cabinet last week, the minister said its computing pillar aims to create an AI computing infrastructure of at least 10,000 GPUs or graphics processing units, which will be done through public-private partnerships construction.

“Nvidia is supporting our AI mission. When asked about the involvement of big tech companies, Vaishnaw added: “The details will be worked out. “GPUs are the cornerstone of AI because they provide the high-speed computing power required for the deep learning models required for AI development.

The government will also allocate Rs 1,900 crore for the AI startup financing pillar, earmarked to support nearly 1,000 deep tech and AI startups under the AI Mission, the minister added.

While the mission also provides an AI marketplace aimed at providing AI-as-a-service and pre-trained models, an AI dataset platform will also be established, which will create a privacy protection mechanism to connect dataset owners with startups Ability to collaborate to benefit from innovation.

Regarding the regulation of AI and a separate legal framework against malicious deepfakes, the minister said: “We will propose a comprehensive regulatory framework for AI that focuses on user safety and trust. This will require new legal structures. We will work with all Stakeholder consultation, as we have done with Digital Personal Data Protection and the Telecommunications Bill 2023.”

Vaishnaw's comments came a day after he launched India's fastest router with speeds of 2.4 terbps, made by Nivetti Systems, which he said was one of the innovations that will help India become a major exporter of telecom technology in the next five years.

"We are focused on developing telecom technology products as well as end-to-end telecom technology stack. The 4G/5G solutions launched by BSNL Network are progressing well. Many designers have developed equipment that makes the telecom stack possible," he added.

He expressed confidence in the participation of the telecommunications industry.

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