India plans to launch its first domestically made semiconductor chip by the end of this year, Prime Minister Narendra Modi said during the country’s 79th Independence Day address.

Six semiconductor manufacturing units are already on the ground, and four more have received government approval.

Modi linked the semiconductor initiative to India’s broader efforts in clean energy.

He said the country now has a 50% share of clean energy, reaching this milestone five years ahead of its 2030 target.

Solar capacity in India has risen 30x over the past 11 years, according to Modi.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ India’s semiconductor ambitions represent a dramatic shift from massive import dependency

Modi’s announcement comes as India attempts to reverse a longstanding reliance on semiconductor imports that reached $8 billion in 2018, a significant increase from the $1.5-2 billion annually imported between 2014-2017 1.

This import dependency became particularly acute during U.S.-China trade tensions, when 64% of India’s chip imports came from China in 2018, up from just 30% the previous year 1.

The scale of India’s domestic production goals is ambitious. The country aims to capture 10% of the global semiconductor supply chain market, projected to reach $420 billion by 2030, while building a domestic market worth $110 billion 23.

Currently, India has approved 10 semiconductor manufacturing projects under the India Semiconductor Mission with total investment commitments of $18.23 billion, including major investments from Micron ($2.75 billion) and Foxconn ($600 million) 24.

2️⃣ The semiconductor push aims to create substantial employment opportunities in a talent-short market

India’s semiconductor sector is projected to generate 1 million jobs by 2026, spanning roles from chip design to fabrication and quality control 567.

This employment creation comes at a time when the sector already showed strong growth potential. India’s semiconductor design sector alone generated over $12 billion in revenue in 2014, growing at 18% annually since 2009 8.

However, the industry faces a significant talent shortage that will require extensive upskilling and reskilling programs to meet the demands of the expanding market 57.