India Starts Construction of Three New Semiconductor Manufacturing Plants

Indian Prime Minister Narendra Modi today gave the go-ahead via video link for the construction of three new state-of-the-art factories that will produce latest-generation semiconductors and microchips. He said the investment in setting up innovative enterprises in Dholera, Sadanand (state of Gujarat), and Marigaon (state of Assam) would be around 1250 billion Indian rupees (over $14 billion). The Prime Minister reminded that currently “few countries in the world produce semiconductors” and emphasized the need for a “reliable supply chain,” reiterating that India is keen to play a crucial role in this. “The day is near when India will become a world power in manufacturing products for the semiconductor sector,” Modi said. On the eve of the upcoming parliamentary elections, he remarked the actions of his government and criticized his predecessors.

India has been implementing a strategic program to develop the semiconductor manufacturing ecosystem since December 2021. Numerous incentives totaling 760 billion rupees ($9.2 billion) are available for each segment of the supply chain. Decisions on the construction of the three plants were adopted by the Council of Ministers on February 29, and a few days later a symbolic ceremony of laying the first stones took place. The ventures are planned to create 20,000 direct and 60,000 indirect jobs.