India Could Receive a Massive $30 Billion Investment in the Semiconductor Sector in the Next Three-Five Years, Experts Say

On Thursday, the Maharashtra government approved four major projects totalling an investment of Rs 1.17 lakh crore, that includes a semiconductor manufacturing project to be jointly set up by Israel's Tower Semiconductor and the Adani Group.

India is set to receive a massive up to $30 billion investment in the semiconductor sector in the next three-five years, industry experts said on Saturday, as the country marches towards becoming a global semiconductor hub.

The development comes as the government is aggressively pushing to make India a semiconductor manufacturing powerhouse and reduce its dependence on imports.

On Thursday, the Maharashtra government approved four major projects with a total investment of Rs 1.17 lakh crore, including a semiconductor manufacturing project to be jointly set up by Israel's Tower Semiconductor and the Adani Group.

The project will be set up in Panvel, Raigad district with a proposed investment of Rs 58,763 crore in the first phase and another Rs 25,184 crore in the second phase, creating at least 15,000 jobs.

According to Prabhu Ram, VP-Industry Research Group, CyberMedia Research (CMR), India's strategic investments in the semiconductor industry aim to bolster its domestic manufacturing capabilities and elevate its position within global supply chains.

“This move is significant as India aspires to become a key player in the global semiconductor landscape. The country's vast domestic market, coupled with government initiatives and industry partnerships, is expected to propel India's standing in the semiconductor domain,” Ram said in a statement on Saturday.

During Prime Minister Narendra Modi's recent Singapore visit, both the countries announced a partnership to cooperate in the field of semiconductors.

Singapore and India will leverage complementary strengths in their semiconductor ecosystems and tap into opportunities to build resilience in their semiconductor supply chains.

This will include government-led policy exchanges on ecosystem development, supply chain resilience, and workforce development.

PM Modi, accompanied by his counterpart Lawrence Wong, also visited AEM Holdings, a leading company in semiconductor and electronics sector, and discussed collaboration opportunities.

The Union Cabinet, chaired by PM Modi, has also approved the proposal of Kaynes Semicon Pvt Ltd to set up a semiconductor unit in Sanand, Gujarat, with an investment of Rs 3,300 crore that will produce nearly 60 lakh chips per day.

In March, PM Modi laid the foundation stone of three semiconductor projects worth Rs 1.25 lakh crore. As per reports, India's semiconductor-related market will reach $64 billion in 2026, nearly triple the size in 2019.

The above is the detailed content of India Could Receive a Massive $30 Billion Investment in the Semiconductor Sector in the Next Three-Five Years, Experts Say. For more information, please follow other related articles on the PHP Chinese website!