Nowadays, from the smartphone in our hands to the smart car running on the road, everything depends on a small ‘chip’ i.e. semiconductor. In a new report of NITI Aayog, a complete blueprint has been drawn on how India can become the new ‘semiconductor king’ of the world by the year 2035. According to the report, India does not have to remain just a chip market, but has to become the leader of this entire global industry with a strong value chain of 150 billion dollars. This will require a huge investment of about 180 billion dollars in the next decade, in which the government has been recommended to bear one-third of the total expenditure.
Picture will change by 2035, 150 billion dollar masterplan
The report titled ‘Future of India’s Semiconductor Industry’ released by NITI Aayog directly tells the story of India’s dominance in the global market. The bottom line of this report is that we should not just follow the crowd and copy others. Instead, India will have to build such a strong position on the basis of its strategic strength, without which the global supply chain cannot function. The target has been set to create a huge semiconductor value chain worth 120 to 150 billion dollars within the country by 2035. This is the blueprint to establish India’s dominance in the global market.
Foreign dependence will end, country’s hard earned money will be saved.
Today’s bitter truth is that 90 to 95 percent of our domestic semiconductor needs are imported from abroad. The report estimates that by 2035 the demand for chips in India alone will cross $200 billion. It is a matter of great concern that if we keep buying such a large share from outside, then a lot of the country’s money will go out in the form of foreign exchange. Additionally, if there is ever a disruption in the global supply chain, many of our vital industries could come to a complete halt. That is why reducing this import is the biggest demand of the time.
Government will have to open the coffers, new investment formula
Huge capital is required to create infrastructure from chip designing, manufacturing to advanced packaging in the country. According to an estimate, this will require a total investment of 135 to 180 billion dollars in the next ten years. NITI Aayog has given a very important suggestion to the government. To win the trust of private companies, the Government of India itself should contribute at least one-third of this entire investment from its own pocket. When the government itself invests money in the infrastructure of chip manufacturing factories, the risk of the projects will be reduced. With this, big private companies will be able to make safe investments in India for a long time.
Why is chip necessary?
NITI Aayog Vice Chairman Ashok Kumar Lahiri has clarified that to become a developed nation, we will have to end our dependence on others’ technology. This is called ‘Technology Sovereignty’. In today’s time, everything from Artificial Intelligence (AI), defense equipment, telecom sector, transport to common citizen services run with the help of this small chip. Between 2014 and 2024, the global semiconductor market is expected to grow at a rapid pace of 6.5 percent. It is expected to grow at the rate of 8.5 percent in the coming years.
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