The Aakhya Weekly Special | Semicon India 2024
Semicon Games VI: Ushering in the Era of ‘Silicon Diplomacy’
By Aakhya India Policy Team
Source: www.pmindia.gov.in
The much-anticipated Semicon India 2024 kicked off with a powerful vision for India’s semiconductor future. The event opened with a video highlighting the critical role of semiconductors in electronics manufacturing and India’s ambitious initiatives to foster investments in this sector. The stage was set for a historic event, bringing together key industry leaders, government officials, and academic professionals to discuss and propel India's semiconductor ambitions.
Last year’s edition of Semicon was brimming with optimism and hope for a prosperous future for the semiconductor industry. That energy was carried forward into this year’s inaugural session, which showcased the projects that took off in 2023-24, with stakeholders being mindful of the magnitude of the task ahead. It also carried the sobering reminder of the long incubation period that accompanies the setting up of a semiconductor ecosystem. It was followed by a callback to the oft-repeated phrase that it was not a sprint, but a marathon–a sentiment that was echoed by all participants. Nevertheless, it was apparent from the size of the gathering that India’s semiconductor ambitions are now gathering momentum and have piqued the attention of major chip companies, foreign governments, renowned academics and domain experts from around the world.
While the event saw participation from top global chip companies like Lam Research, Advanced Micro Devices (AMD), Micron Technologies, Samsung, etc., it was encouraging to see a considerable number of indigenous semiconductor players and Indian start-ups in attendance as well. Domestic players strongly appealed to international investors and their global semiconductor counterparts looking to set up in India, to consider collaborations to maximise their potential.
Betting on India
In his address, Prime Minister Narendra Modi referred to this moment as “the right time to be in India.” In addition, he said that India’s semiconductor industry would help fulfil the aspirations of millions, not just in India, but globally. His powerful statement, “When the chips are down, you can bet on India,” struck a chord with the audience. Modi outlined the government’s support, including the establishment of a ₹1 trillion research fund to bolster semiconductor R&D, India’s vast talent pool, and its rapidly growing digital infrastructure. He reiterated his dream of every device housing an Indian-made chip and committed to providing all necessary support to achieve this vision.
The Prime Minister referred to the present “Silicon Diplomacy” age, marking a shift away from the “oil diplomacy” era of the twentieth century, and highlighting India's collaborations with nations like Singapore, Japan, and the US. He concluded with a bold target—by the end of this decade, India will generate $500 billion in semiconductor revenue and create 6 million jobs, contributing to the global semiconductor value chain.
Source: www.pmindia.gov.in
Ashwini Vaishnaw, Minister of Electronics & IT, delivered a compelling address, marking this as a pivotal moment in India's tech history. It was the first time that SEMICON India featured participation across the semiconductor fabrication value chain. He alluded to India's commitment to democratising technology access through Digital India, stating, “Semiconductors will deepen this vision by powering devices that connect all citizens to the digital world.” Vaishnaw proudly noted India’s approval of five new chip plants in record time, underlining the importance of developing a talent pool of 85,000 engineers across 113 universities to fuel the semiconductor ecosystem. Minister Vaishnaw also expressed appreciation for the interest shown by top global chip companies, such as AMD and Lam Research, who had each announced huge investments into India during last year’s conference (read our coverage of Semicon 2023 here) and are now looking to scale up to the next level.
Playing Hosts and Bringing Investments
Chief Minister Yogi Adityanath, who addressed the inaugural session, representing the host state Uttar Pradesh, highlighted the importance and advantages of the UP Semiconductor Policy 2024. He further alluded to UP’s growing role in India's electronics industry and noted that UP now produces over 55% of the country’s mobiles and more than 50% of mobile components. He referred to UP's emergence as a major exporter of consumer electronics, with Samsung's mobile and display unit plants in Noida playing a significant role. CM Yogi also held one-on-one talks with twelve major chip companies on the sidelines of SEMICON India, to boost semiconductor manufacturing in UP. He announced the upcoming groundbreaking ceremony for investment proposals worth ₹10 lakh crore in the state, suggesting further that the UP government has reserved 1,000 acres of land for semiconductor projects and is willing to offer additional benefits to Fortune 500 companies.
Randhir Thakur, a semiconductor veteran, highlighted India’s rapid progress. He noted how partnerships with Taiwan and global leaders in equipment, automation, and packaging have put India on the path to semiconductor self-reliance. Thakur confidently stated, “With approvals granted in record time and partnerships with global leaders, India is now poised to tackle critical semiconductor needs for AI, automobiles, and data storage.”
The focus on talent and innovation was echoed by NXP Semiconductors, which has a long-standing presence in India. NXP has doubled its R&D efforts in the country and reaffirmed its commitment to India’s semiconductor journey. “We’ve been here for 50 years, and now we are innovating for India and the world,” said NXP leadership, citing key areas like automotive and industrial sectors as ripe for semiconductor advancement.
Renesas and IMEC also pledged to double their headcounts in India by next year while IMEC underscored the importance of “reliable supply chains”, and hailed India as a trusted partner for advancing technology democratisation.
Semicon India 2024 signals India’s arrival as a global semiconductor player. With major investments, talent development, and international partnerships in place, India is well-positioned to lead the future of semiconductors.