Explained: Why India’s Focus on Semiconductor Manufacturing is Strategically Important


India recently approved a Rs 76,000 crore PLI program to boost semiconductor and display manufacturing. (Photo: Reuters)

The government’s focus on increasing semiconductor production in India could go a long way in making the country a global hub for electronics, in addition to creating jobs and attracting investment from the best. companies around the world.

The government on Wednesday approved a Rs 76,000 crore production-linked incentive program (PLI) to boost semiconductor and display manufacturing – a move that experts say will strategically benefit India , especially at a time when the whole world is facing a semiconductor shortage. .

While India has tried or at least expressed interest in increasing semiconductor production in the country in the past, this is the first time that a program has been approved to boost semiconductor manufacturing that makes integral part of modern technological products, including cars, electronic gadgets and even medical devices.


In addition to helping the country reduce its dependence on imports, the program to boost semiconductor production will lead to massive investments and create a large number of jobs.

It is estimated that the program will create 35,000 skilled jobs, in addition to one lakh of indirect employment opportunities. This could also generate investments to the tune of Rs 1.7 lakh crore.

Union Minister Ashwini Vaishnaw said the program will spur the development of a complete semiconductor ecosystem, from design to manufacturing, packaging and testing.

Explained: What Makes Semiconductors Critical to Multiple Industries

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