India set to become global semiconductor manufacturing destination: Industry

New Delhi: The Union Cabinet's nod to three upcoming semiconductor manufacturing units is a step towards self-sufficiency and makes the country's dream of becoming a global chip making destination achievable, according to industry players.

The Union Cabinet on Thursday approved setting up three semiconductor-making units, entailing an investment of Rs 1.26 lakh crore, as part of an attempt to cut India's dependence on imports to meet the requirements of chips.

According to S P Kochhar, Director General, COAI (Cellular Operators Association of India), the approval for these units which has come under India's Semiconductor Mission is a positive and commendable development.

"This is a progressive step for India and the strongly emerging manufacturing ecosystem in the country. We believe this serves as an excellent example for our nation towards attaining self-sufficiency in line with our honourable prime minister's vision of 'Atmanirbharta' and will further inspire India's goals to become a global manufacturing and supply chain hub" he said.

Kochhar said that with the output from these facilities being poised to benefit various sectors, it is expected to provide a fillip to the 'Digital India' mission through increased technological prowess and advancement of the indigenous industrial ecosystem, besides generating employment and attracting more investments in the country.

Chairman of ICEA (India Cellular and Electronics Association) Pankaj Mohindroo said the move will pave the way for setting up more semiconductor fabrication plants (Fab) and outsourced semiconductor assembly and test units (OSAT) in the country.

"The emergence of Bharat as a global semiconductor manufacturing destination no longer seems to be a distant dream. By 2027 we will have the FAB and OSAT units producing. By the end of the decade, we may have more than 10 fabs and 20 OSAT units in production besides many semiconductor product design companies," Mohindroo said.