Semiconductor chips are tiny pieces of computer hardware that play a vital role in everything from mobile phones to militaries.
They are also central to Delhi’s plan to turn India into a global technology powerhouse.
Delhi has invested billions of dollars in subsidies and infrastructure projects to create a domestic chip-manufacturing industry. The government also offers incentives to foreign companies that set up chip-making facilities in India. But so far, the country has failed to produce a single world-class chipmaker.
Despite the challenges, Delhi is pressing ahead with its plans.
The government is investing $6 billion in a new National Semiconductor Laboratory, which is due to open in 2021.
Cutting edge tech
The lab will be equipped with cutting-edge facilities for developing and testing chips.
Delhi is also working on a $770 million semiconductor Fab Park, which will provide cleanroom space and other infrastructure for chipmakers.
The first phase of the park is due to open in 2021, with the second phase expected to be completed by 2025.
The government is also subsidizing the construction of new chip-making facilities by Indian companies.
In 2018, it committed $1.6 billion to help Hindustan Semiconductor Manufacturing Corporation build a new factory near Chennai. The facility is expected to be operational by 2022.
Delhi’s ambitious plans have yet to bear fruit, but the government is committed to creating a world-class semiconductor industry in India.
With billions of dollars of investment and a host of incentive programs, it may only be a matter of time before the country produces its first world-class chipmaker.
