On September 11, 2024, Prime Minister Narendra Modi addressed a gathering at the inauguration of SEMICON India 2024, held in Greater Noida, Uttar Pradesh. His speech centered on the importance of creating resilient supply chains and encouraging investments in semiconductor manufacturing, a key driver of the global economy, impacting industries from electronics to electric vehicles (EVs) and artificial intelligence (AI).
The Importance of Supply Chain Resilience
Prime Minister Modi underscored how the COVID-19 pandemic highlighted the critical importance of supply chain resilience. Global supply chains were severely disrupted, particularly in industries dependent on China, including the semiconductor sector. With strict lockdown measures in China affecting the global supply of chips—essential components in almost all modern electronic devices—this disruption had far-reaching consequences.
“Resilience of the supply chain is very important,” Modi stated, emphasizing that India is actively working to develop resilient supply chains across various sectors of the economy. By reinforcing its supply chains, India aims to minimize vulnerabilities in the face of future disruptions.
India’s Vision for Semiconductor Manufacturing
In his address, Prime Minister Modi laid out his vision for India’s semiconductor industry. He highlighted the government’s commitment to making India a global hub for semiconductor manufacturing and shared his dream of seeing Indian-made chips in electronic devices worldwide.
Modi also emphasized that India’s reformist policies, its stable regulatory environment, and the aspirational nature of its tech-savvy market form a strong foundation for the growth of the semiconductor industry. This combination, which Modi referred to as the “Three-D Power” (reformist government, growing manufacturing base, and aspirational market), creates a conducive environment for chip manufacturing and presents a compelling case for international investors.
Growing Investments in Semiconductor Projects
During the conference, Prime Minister Modi highlighted the significant investments that have already been made in India’s semiconductor sector. He revealed that over ₹1.5 lakh crore (approximately $18 billion) has been committed to various semiconductor manufacturing projects, with more investments expected as several projects remain in the pipeline. This substantial financial commitment underscores the government’s focus on positioning India as a major player in the global semiconductor supply chain.
To further boost domestic semiconductor manufacturing, the Indian Cabinet recently approved a ₹3,300 crore (approximately $400 million) investment in Kaynes Technology’s semiconductor plant in Gujarat, a major step in enhancing the country’s chip production capabilities.
Stable Policies and Technological Market
Modi made a strong case for India as a favorable investment destination, highlighting the country’s stable policies and openness to reforms. With a growing demand for advanced technology products in India, the domestic market offers enormous opportunities for semiconductor companies. India’s technological advancements, combined with its skilled workforce and increasing demand for electronics, make it an attractive proposition for semiconductor manufacturers looking to diversify their production bases.
Conclusion
Prime Minister Modi’s speech at SEMICON India 2024 highlighted the country’s determination to become a global semiconductor powerhouse. As the world’s demand for chips continues to rise, India is positioning itself to be a key player in the global semiconductor supply chain. With a clear focus on supply chain resilience, substantial investments in domestic manufacturing, and a supportive policy environment, Modi reaffirmed that when “the chips are down, you can bet on India.”
