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

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

The Prime Minister of India, Narendra Modi has said that the country has no option but to be self-reliant on semiconductors. The global semiconductors crisis comes at a time of geopolitical tensions between China and the US, as well as new issues related to the Russian invasion of Ukraine.

“When it comes to semiconductors, India has no choice but to be ‘self-reliant’,” Modi said in a post-budget webinar on ‘Make in India for the world’ on March 3. Department for Promotion of Industry and Internal Trade This sector has brought new possibilities for Make in India.

Semiconductor shortages have particularly affected the consumer electronics as well as automobile sector across the globe. Most of the semiconductors are made in Taiwan, South Korea and the US which are divided among the largest chip makers and fab of TSMC, Samsung and Intel.

The Modi government has announced a production-linked incentive scheme of Rs 76,000 crore for domestic semiconductor and display board production.

“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.

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