PM Modi Highlights Importance of Made in India Chips for National Self-Reliance and Economic Growth
In a recent address, PM Modi stressed that self-reliance in chip manufacturing is crucial for India’s economic stability and technological advancement. He highlighted lessons learned from the Covid-19 pandemic regarding supply chain vulnerabilities.
Business
Prime Minister Narendra Modi emphasised the significance of self-reliance in India’s development, highlighting the importance of domestically produced chips. During a virtual event to lay the foundation stone for India Chip Pvt Ltd, a joint venture between HCL Group and Foxconn, Modi noted how the COVID-19 pandemic exposed vulnerabilities in the global chip supply chain, affecting economies and halting factory operations.
Modi stated that India’s future as a developed nation hinges on self-sufficiency, particularly in technology. “Whatever India is doing in the field of technology in this decade, it will become the foundation of our capability in the 21st century,” he said. The Prime Minister stressed that local chip production would reduce dependency on foreign manufacturers for modern equipment.
India’s Semiconductor Ambitions
The India Chip Pvt Ltd facility will be established at the Yamuna Expressway Industrial Development Authority (YEIDA) in Jewar, Greater Noida. This Outsourced Semiconductor Assembly & Test (OSAT) facility is expected to bolster Uttar Pradesh’s reputation as a technology hub. As a Member of Parliament from Uttar Pradesh, Modi expressed pride in this development, noting its potential to generate significant employment opportunities for youth across India.
Despite entering the semiconductor sector later than some countries, India is advancing rapidly. Modi remarked that while oil-rich nations held power in the 20th century, today’s power lies in tiny chips and related skills. The joint venture between HCL Group and Foxconn involves a 60:40 partnership, with plans for an advanced OSAT facility operational by 2028.
Investment and Economic Impact
The project involves an investment of Rs 3,700 crore over several years to produce display driver chips. It aims to create over 3,500 direct and indirect jobs, develop local supply chains, and attract ecosystem partners within the semiconductor value chain. The facility plans to process 20,000 wafers monthly to meet India’s growing demand for semiconductor components.
Union Electronics and IT Minister Ashwini Vaishnaw highlighted India’s rise as an electronics manufacturing powerhouse under Modi’s leadership over the past 11 years. India now ranks third globally in electronics exports. The new plant will produce 3.6 crore chips monthly, contributing significantly to domestic and international markets.
Local and Global Perspectives
Uttar Pradesh Chief Minister Yogi Adityanath described Jewar as a burgeoning asset for both the state and country. He linked UP’s development to Modi’s vision for chip manufacturing. Bob Chen, President of Foxconn’s Semiconductor Business Group, expressed enthusiasm about establishing a reliable semiconductor assembly and testing facility in India.
Roshini Nadar, Chairperson of HCL Group, stated that the joint venture would serve both domestic and international markets. She emphasised the facility’s role in supporting India’s growth within the global technology landscape.
This initiative marks a significant step towards building a resilient semiconductor supply chain in India. By focusing on local production capabilities, India aims to strengthen its position in global technology markets while fostering economic growth through job creation and investment.
With inputs from PTI