Two chip projects worth US$414mil approved 


Economic transformation: Modi at an event in India. He says the new project will boost the country’s efforts to be a leader in the global semiconductor value chain by strengthening its technological self-reliance. — AFP

NEW DELHI: India says it has approved two new semiconductor projects worth US$414mil, as the government accelerates efforts to establish the country as a global electronics powerhouse.

The projects – an LED display facility and a semiconductor packaging unit –were cleared late Monday, taking the number of facilities in the country to 12, with a total investment of about US$17.2bil.

The nation launched its push into domestic chipmaking in 2021 and has since backed a range of fabrication, design and packaging units as part of a broader strategy to cut import dependence and strengthen supply chains.

Prime Minister Narendra Modi said the two new projects were a part of “our efforts towards making India a leader in the global semiconductor value chain.

“India’s advances in the world of semiconductors will boost economic transformation, technological self-reliance and encourage the innovation ecosystem”.

The LED project will be an “integrated facility for compound semiconductor fabrication”.

It is aimed at producing mini and micro display modules, the government said in a statement.

The packaging unit will cater to automotive, industrial and electronics sectors.

The projects would defintely provide a “significant boost” to the country’s semiconductor ecosystem and “complement the growing world class chip design capabilities coming up in the country”, it added.

India’s chip market has risen from around US$38bil in 2023 to an estimated US$45bil to US$50bil in 2024-2025.

The government is targeting US$100bil to US$110bil by 2030.

Several previously approved plants have begun production, with two facilities already starting commercial shipments. — AFP

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