With a $10 billion incentive package for firms to set up semiconductor facilities, India is betting big on its well-established ability in chip design and its end-to-end electronics manufacturing ecosystem to give the country an edge over competitors.
Union minister for electronics and information technology Ashwini Vaishnaw tells Surabhi Agarwal that the government will not only help with infrastructure, but will also expedite clearances, with approvals for some big-ticket investments coming as soon as the next 4-6 months.
Vaishhnaw claims that while any country can offer funds, India is presenting a 20-year roadmap to corporations, calling semiconductors the missing element in India’s electronics manufacturing ecosystem.
On getting asked, How will the government woo large companies like Intel and Samsung, which have already chosen other nations for their chip manufacturing plants?
Vaishnaw replied that the approach to think about it is to consider what India has to offer that is unique among other countries. What sets us apart is our excellent design ecosystem. For numerous worldwide firms, we have over 20,000 design engineers working in India. As a result, that’s a major factor.
Furthermore, Indians account for around 20% of all high-level, high-quality, high-tech employees in this industry worldwide. Third, business was looking for more than simply financial assistance. Any country can provide investment support, including any European country. Is there a 20-year framework or roadmap, which we have provided? How do you ensure that industry can continue for that long? By concentrating on the individual’s abilities.
So, there is a very crucial component in this programme called C2S – Chips to Startup, which will establish an 85,000-strong talent pool in partnership with various IITs, NITs, and international colleges… So there’s a talent pool of 85,000 people. Industry will be quite confident if we are able to accomplish this in the next years. Dollars, as you can see, are plenty. It is the brain, not the dollars, that counts.
What we’ve considered in this, as well as Prime Minister Modi ji’s goal, is that we should be able to support the sector in all of its dimensions for a long time. This is what boosts our self-assurance.
Surabhi Agarwal proceeded with asking that, One of the most common accusations is that India is too laid-back and has too many bureaucratic stumbling blocks. When it comes to chips, worries about a lack of resources such as water and electricity come up. What are your plans for dealing with these issues?
Vaishnaw responded to the question by saying that infrastructure, ultra-pure water, and energy are all things that need to be considered (will be taken care of). The electronics manufacturing ecosystem, which is already established here, is also instilling confidence in the population.
In the electronics manufacturing industry, we were nothing a decade ago. India’s electronics manufacturing industry has already surpassed $75 billion in value. By 2025, the company is expected to have a market capitalization of $250 billion. The industry expects us to hit $300 billion. As a result, people have a great deal of faith in the system. Previously,
Mr. Ashwini Vaishnaw continued by saying that India’s previous image as a country beset by bureaucratic (barriers), red-tapism, and a lack of simple clearances is no longer valid. Our current champion is the electronics industry, which is going out and informing everyone that this is the place to be. They are also turning into chip consumers.
Where would you use those chips if you had to start a fab here before? There was no such thing as electronic industry. Today’s ecosystem is capable of consuming all of these chips.
The interviewer’s first question went like, How soon will some of the larger units gain clearances, given the global chip shortage?
To which Vaishnaw responded, A few months, very quickly… In the next four to six months, you may anticipate a lot of action. You should be able to witness some excellent action.
The interviewer’s next question to Vaishnaw was, Do you think a large-scale manufacturing plant will be permitted by your office in the next four to six months?
Interviewer’s last question to Mr. Ashwini Vaishnaw:
What are you willing to go above and beyond to get big businesses to move here?
To this Vaishnaw answered, This has already been subjected to a great deal of research. We’re not only considering the big players; we’re also considering a slew of lesser ones. At least 20 plants will be small, including compound semiconductor plants, photonics plants, MEMS plants, memory, sensor plants, packaging plants, and so on. Where would you get a complete plan with a 20-year horizon like this? No country would willingly give up a 20-year commitment.
We’ll do everything in an open and transparent manner, including the selecting process. Stakeholder discussions have previously been held in large numbers. If no one writes, no one will show up. When people see activity, they come. Industry considers all aspects before making a decision.