India Plans to Expand Its Electronic Chip Industry
Indian Prime Minister Narendra Modi inaugurated two new semiconductor production lines yesterday, Thursday, in a new step that falls within an ambitious effort to position India at the forefront of countries exporting electronic chips. The Indian government announced last July a support program worth $13 billion to boost local production of these chips, which are a key element in the development of artificial intelligence technologies. Speaking at the opening of the “Semicon 2.0” conference, which brings together major players in the sector in New Delhi, Modi said, “Chips manufactured in India are sold in India and around the world,” according to the Agence France-Presse (AFP). The prime minister had previously met with officials from Indian companies Tata Electronics and CG Power, along with representatives from major competing firms such as ASML, Micron, Applied Materials, Intel, and Foxconn. Last year, New Delhi invested $18 billion in 10 semiconductor-related projects, including the opening of two advanced factories in the capital’s suburbs and in Bangalore in southern India. Although India remains distant from leading countries in this field, such as the United States, Taiwan, South Korea, and China, its chip manufacturing market is experiencing rapid growth. The market value rose from approximately $38 billion in 2023 to between $45 billion and $50 billion during the 2024–2025 fiscal year, and investors hope the value will exceed $100 billion by 2030. Modi stated, “Our industrial system has moved beyond the establishment phase and entered a stage of major expansion,” and reaffirmed his commitment to training 100,000 engineers in the design and manufacturing of electronic chips within India, as well as ten million people in artificial intelligence development. In recent months, India has announced investments exceeding $200 billion from Indian and foreign companies, particularly in building massive data centers, as part of its efforts to catch up with the United States and China in the artificial intelligence race.
