Elusive quest for semiconductor self-sufficiency

livemint.com:

Semiconductors are the life blood of modern electronics, and their demand is increasing exponentially. India, a large consumer of electronics, is importing almost all its semiconductor needs to the tune of $24 billion a year (demand is expected to touch $110 billion by 2030). Massive supply disruption during the pandemic and emergence of virulent geopolitical tensions across the world, is forcing nations to seek self-reliance for accessing this precious commodity.

Also, India has identified electronics manufacturing as a key sector to boost growth and exports. Yes, there were many attempts. Way back in 2006, the Andhra Pradesh government signed up with SemIndia to set up a $3 billion chip making facility.

The project failed to take off. In 2007, the Centre wooed Intel Corporation, but it, instead, chose to invest in China and Vietnam. In the decade that followed, India sought and got multiple expressions of interest (EoIs).

The Union Cabinet approved two projects, one by JP Associates and the other by Hindustan Semiconductor Manufacturing Corporation, in February 2014. Both the projects got stalled and were eventually dropped. Semiconductor making is highly capital intensive and needs huge government support to become viable.

It was limited till recently. Also, chip-making involves designing, fabricating, assembling, testing, marking, and packing. Experts say the government is trying to put the cart before the horse by seeking fab units before the necessary ecosystem is in place.