PM Modi Wants To Make India A Chipmaking Superpower

The Narendra Modi government has now zoomed in on microchips. India's western state of Gujarat is inviting chipmakers from U.S, South Korea & Japan to invest in the state. India is eyeing the semiconductor market which is poised to cross $1 trillion by the end of the decade. Ahead of the Vibrant Gujarat Global Summit, the Chief Minister of Gujarat Bhupendra Patel has revealed that the government has held crucial investment talks with leading chipmakers. The tenth edition of the summit is being held from January 10 to 12, 2024 in Gandhinagar, Gujarat.

CAN INDIA BREAK THE CHIP MONOPOLY?

But achieving dominance in this complex and fiercely competitive field is no easy feat. In 2021, the Modi government embarked on an ambitious journey with a $10 billion war chest. But after initial glitz & glamour the hunt for silicon's shine paled. Taiwan's Foxconn backed out of a $19.5 billion chips joint venture with India's Vedanta. Both companies decided to part ways and go solo. Some other investments were also stalled. Despite the hiccups the Modi government has once again launched a multi-pronged attack to crack the chipmaking code. Foxconn is building a semiconductor plant, and U.S. firm Micron Technology Inc is building a chip assembly and testing facility in the state of Gujarat, and all eyes are now on Taiwan & Japan.

WHAT ARE SEMICONDUCTORS?

Semiconductors can be found in thousands of products such as computers, smartphones, appliances, gaming hardware cars and aeroplanes. Semiconductors are made of silicon. High-power lasers print circuit designs on thin slices of silicon. These circuits helps in the flowing or restriction of current which are essentially on and off signals that are interpreted in digital systems as 1s and 0s. Thus forming the brain of every computer.

CHIPS & CHECKMATES: A GEOPOLITICAL GAMBIT

A rapidly evolving global macroeconomic and geopolitical factors are dominant forces shaping the semiconductor industry. A raging war in Ukraine and the fears that Israel-Hamas war can spillover to the Middle East, has once again made the semiconductor industry jittery, as it has a highly vulnerable global supply chain. Hence nations are once again trying to reassess their options as the pandemic showed how a connected world can also be a bane.

FROM MISSILES TO MICROCHIPS

Apart from its usage in day to day gadgets, nations are also putting these chips in their security matrix. These tiny devices are crucial to the military. From missiles to precision-guided munitions to drones, semiconductors are at the heart of these systems. Semiconductors are fundamental to secure, reliable communication technologies. Under the Modi government there is a growing impetus on 'Make In India', from fighter jets to drones, everything is being domestically produced. It's prudent for the security establishment to reduce dependence on foreign nations for such crucial components.

Establishing a robust chipmaking industry would not only reduce India's dependence on foreign imports but also boost domestic manufacturing, create high-skilled jobs, and propel the country's technological prowess, and benefit the economy.