India’s first semiconductor manufacturing unit to be announced soon: IT Minister Ashwini Vaishnaw

The first semiconductor factory will be announced in a few weeks, and India is poised for a vibrant chip industry over the next 3-4 years with enabling policies and strong government commitment to the growth of manufacturing ecosystem, said Union Minister Ashwini Vaishnaw. Tuesday.

Today, 99% of cell phones used here are made in India. This is in stark contrast to the situation 10 years ago, when out of 100 phones, up to 99% were imported, the minister for electronics and IT said during a session at the CII Partnership Summit 2023 .

“And now the ecosystem is also shifting to the country. When it comes to mobile phone manufacturing, India is number two in manufacturing and number three in exports,” the minister said.

This year, mobile phone exports will reach $9.5-10 billion (nearly Rs. 78,361 crore-Rs. 82,485 crore), he added.

To boost the supply, major initiatives have been undertaken by the center, including emphasizing the promotion of the ecosystem and ensuring a clearly defined, stable and coherent policy framework, according to him.

The government is focused on building and promoting the semiconductor industry and has actively engaged with all stakeholders.

The government is “determined to do what is necessary to succeed”, the minister said.

“…it’s building credibility, getting us to an inflection point where the first fab should be declared in the next few weeks and it’s just getting started,” Vaishnaw promised the audience.

Given the progress made on all fronts in India’s semiconductor master plan, “we should see a vibrant semiconductor industry in the next 3-4 years,” he noted.

India’s strategy of pursuing a combination of targeted consumption and public investment has led to sustainable growth and moderate inflation, the minister said.