PM Modi advocates self-reliance on semiconductors amid persistent shortage of auto chips

“A country as big as India will never progress and our youth will not get opportunities if we remain only a market. We have seen during the pandemic how the global supply chain has been destroyed. Today the world sees India as a manufacturing Our manufacturing sector accounts for 15 per cent of India’s GDP. But Make in India has endless possibilities. “We must work together to build a strong manufacturing base,” the Prime Minister said.

There is talk of Foxconn partnering with local companies to manufacture chipsets in India. In the late 2000s, Intel was interested in building fabs in India, but that plan never came to fruition. Since then, India has never been considered a favorable market for manufacturing semiconductors, due to the lack of clean water and constant electricity.

Due to the lack of chipsets, many automakers have had to delay the launch of the vehicles or have not been able to meet the production schedule. In fact, Volkswagen removed electric ORVMs from its cars as it could not buy microcontroller chips for the same.