Confident that India will have minimum 5 fabs in 5-7 years: IT Minister Ashwini Vaishnaw: PTI

India's global semiconductor ambition is getting a "huge response" from every part of the value chain, IT Minister Ashwini Vaishnaw said on Friday exuding confidence that the country will have at least five fabrication units (fabs) over the next 5-7 years, attracting multi-billion dollars in investments, PTI reported. 

Semiconductor is a "foundational industry" that feeds into almost everything people use in their daily lives, from refrigerators to television, and cars to trains, he said, emphasising the reason behind India's focus on getting into the global semiconductor manufacturing play.

"So we see a huge response from practically every part of the value chain, from equipment manufacturers, and gas and component suppliers, and from fab to design ecosystem, everyone is interested," the minister told PTI.

 “I can, with a high level of confidence, say that in the coming 5-7 years, India will have minimum 5 fabs,” he said.Each Fab requires an investment outlay of USD 5 billion and above, depending on the node and complexities, he said and underlined that having a basic semiconductor capability tends to have a “multiplier effect”, as it feeds into multiple other industries like electronics manufacturing, mobile manufacturing, laptops, IT hardware. Practically every manufacturing sector gets a boost,” he said.

He said India is becoming an attractive location for global semiconductor biggies and investors owing to various factors like skill and talent base, stable and transparent policy, green energy, stable logistics support, and the fact that the nation is seen as a trusted partner to the world.”All those things have helped,” Vaishnaw said and added that India is becoming part of global semiconductor manufacturing conversations.It is pertinent to mention that India is wooing semiconductor and display manufacturers with US$ 10 billion incentive plan, as part of a determined bid to position the country as a global and vibrant hub for electronics production, PTI stated. 

Semiconductors are a crucial part of India’s self reliance plan, as it focuses on the sector to wean away dependence on imports, especially from China.  Last month, computer storage chip maker Micron announced it will set up its semiconductor assembly and test plant in Gujarat entailing a total investment of US$ 2.75 billion. 

The total cost of the plant comprises US$ 825 millionfrom Micron and the rest from the government in two phases. “Within a few weeks…Micron project has got the land allocation. They have already started working on the land to prepare the land for construction,” Vaishnaw said. Some other players too have evinced interest in setting up semiconductor manufacturing base in India. After pulling the plug on their US$ 19.5 billion semiconductor JV, Foxconn and Vedanta have now decided to apply for India chipmaking incentives, separately, PTI noted. 

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