Dholera chip fab: India's leap into electronics manufacturing

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₹91,000 crore, is projected to produce 3 billion chips annually, in 28 nanometers (nm), 50nm, 55nm, and 90nm 'nodes', Vaishnaw added. Experts said the move could mark the beginning of India's evolution as a market that not only produces components, but also manufactures indigenous products. “Almost everything is imported today.

Now, at least for mature node requirements in automobiles, washing machines and white goods, semiconductors produced in India will be used domestically," said Ajai Chowdhry, cofounder, HCL. According to Pankaj Mohindroo, chairman of India Cellular and Electronics Association (ICEA), the true impact of this initiative will be realized through the growing scale of electronics manufacturing in India. “The key factor here is scale, which may not necessarily provide net value-addition, but will significantly contribute to gross value addition in electronics manufacturing." "For instance, in a $300 billion market, if we achieve $60 billion in value addition, it will represent local value addition of 20%.

In contrast, an $80 billion market would yield $32 billion in local value addition—a share of 40%. Achieving 20% addition is crucial because India's aim is to become a major-scale electronics manufacturer with capabilities across all sectors," he added. The node size indicates the size and level of advancement of a chip.