India is poised to become a formidable player in the semiconductor industry, setting the stage for a new competition between China and the United States. With the Indian government's push to develop its domestic industry, opportunities abound, especially as many companies seek to reduce their reliance on Chinese chips amid geopolitical tensions with the US.
The domestic industry in India is gaining momentum, with Qualcomm, the US giant, opening a new design center in Chennai, India. This move underscores the growing interest of international players in India's semiconductor landscape.
Prime Minister Narendra Modi inaugurated three semiconductor factories, one of which is a joint venture between Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corp. Chairman of PSMC, Frank Huang, anticipates that the company will produce India's first semiconductor chip by 2024.
This venture is expected to create 1,600 job opportunities, with a focus on designing wireless technology. Qualcomm's CEO, Cristiano Amon, highlights the significance of India's presence, noting that many chips are designed in India, which also creates opportunities for Indian companies.
India's ambition extends beyond domestic production, as it aims to break into the top five global semiconductor producers, currently dominated by the US, China, South Korea, Japan, and Taiwan. According to TrendForce's December report, Taiwan leads in global semiconductor manufacturing capacity, accounting for nearly half of the global output.
Other major contributors include China, South Korea, the United States, and Japan. Minister of Electronics and Information Technology, Railways, and Communications, Ashwini Vaishnaw, expressed confidence that India will be among the top five semiconductor-producing nations within the next five years.
India's strides in the semiconductor industry signify a significant shift in the global market dynamics, with the country poised to emerge as a key player in this critical sector. As India continues to invest in technological innovation and infrastructure, its ascent in the semiconductor industry is set to reshape the competitive landscape and foster new opportunities for growth and collaboration on the global stage.