To strengthen semiconductor manufacturing in India, Prime Minister Narendra Modi has reached out to two prominent American chip makers, Micron Technology and Applied Materials, extending invitations for collaboration.
Prime Minister Modi has previously expressed his vision to transform the upcoming decade into a "techie" or "tech decade," emphasizing India's potential for technological innovation.
Micron Technology, a global leader in memory and storage solutions, has been invited by Prime Minister Modi to bolster semiconductor manufacturing in India.
Sanjay Mehrotra, the CEO of Micron Technology, has welcomed the opportunity and expressed enthusiasm for the prospects that lie ahead in the Indian market.
Mehrotra highlighted Micron's expertise in supplying memory and storage solutions to various industries, including data centres, smartphones, PCs, and artificial intelligence.
During a meeting with Gary E. Dickerson, the President, and CEO of Applied Materials, Prime Minister Modi discussed the potential for the company to collaborate with Indian academic institutions to cultivate a skilled workforce in semiconductor manufacturing.
Dickerson expressed a strong desire to work alongside Modi and the people of India, showcasing Applied Materials' commitment to forging successful partnerships.
Furthermore, Prime Minister Modi met with H. Lawrence Culp, the CEO of General Electric (GE), where he extended an invitation for GE to play a more significant role in India's aviation and renewable energy sectors.
The Indian government appreciated GE's long-term commitment to manufacturing in India, and discussions revolved around technology collaboration to promote manufacturing within the country.
India has been actively promoting semiconductor development and introduced a production-linked incentive (PLI) scheme to attract global semiconductor companies.
The country aims to position itself as an attractive investment destination and one of the most favorable locations in Asia for electronics and semiconductor manufacturing.
Despite India's promising semiconductor market, valued at USD 27.2 billion in 2021 with an expected CAGR of nearly 19 percent, the country currently lacks domestic chip manufacturing capabilities.
Creating semiconductor units, commonly known as fabs, is a difficult and costly task. Fabs require advanced technology, involve inherent risks, and demand long gestation and payback periods.
However, the Indian government is determined to create a conducive environment for semiconductor manufacturing by facilitating collaborations with international companies and investing in the development of skilled human resources.
By inviting Micron Technology and Applied Materials, Prime Minister Modi aims to leverage their expertise and establish a robust semiconductor manufacturing ecosystem in India.
The partnerships would not only boost the country's technological capabilities but also generate employment opportunities and contribute to the overall growth of India's economy.