India can be semiconductor and electronics manufacturing hub in 5-7 years: Rajeev Chandrasekhar

In the next 5-7 years, India could become semiconductor design, engineering R&D solutions, electronic manufacturing services providers hub, believes Rajeev Chandrasekhar, the Minister of State for Skill Development and Entrepreneurship and also the Minister for electronics and Information Technology for India. 

“There is a whole new layering of opportunities on top of what our core capabilities were over the last 15-20 years,” said Chandrasekhar, speaking at an event organised by Microsoft on Tuesday.   

“There’s a tremendous amount of opportunity in the world for trusted manufacturing and trusted partners in their value chain,” added Chandrasekhar.   

In November last year, media reports said that the Tata Group were in discussions with various states to buy land on which it plans to build a chip manufacturing land estimated to be worth $300 million. Reports said that the facility will serve as an outsourced semiconductor assembly and testing facility.   

The announcement by Intel came a few days after the Union Cabinet, on 15 December, approved a Rs 76,000-crore scheme to boost semiconductor and display manufacturing capabilities in the country. The total amount of incentives announced for the semiconductor space stands at Rs 2.30 lakh crore, according to the government.   

Also read: Govt to begin receiving proposals under semiconductor manufacturing plan from Jan 1, 2022

According to the government, the Indian semiconductor market was worth Rs 1.13 lakh crore in 2020, and forecasts the market to reach Rs 4.73 lakh crore by 2026.   

“We are today adding two unicorns every month when the world has still not gotten over Covid, it tells you the kind of energy and potential and passion that exists in India today to grow,” pointed out Chandrasekhar.   

The state minister for IT said that India had tripled its electronics production over the past four years, while many in the industry were sceptical that they had missed the train.   

“I think we should stop obsessing over the velocity of somebody else’s train and focus on increasing the velocity of our train,” he said.   

“This is the Y2K moment for the Indian Digital space. The next 4-5 years presents a huge opportunity to do a step function jump,” he added.