Everything in the world and even in space is run by semiconductors. The worldwide chip scarcity served as a reminder to the biggest economies to invest in the ecosystem since it was a crucial component that could have stopped the globe. In August 2021, just a few months after India unveiled its semiconductor program of Rs. 76,000 crores, the US passed legislation granting $52.7 billion in subsidies for US semiconductor firms and research.
In light of the significance of semiconductors, Sunil Bharti Mittal, the founder and chairman of Bharti Enterprises, reflected on India’s wasted opportunities and failed attempts in the semiconductor industry during his speech at Business Today’s India@100 Economy Summit. The first factory we had in this country was a semiconductor factory, according to Mittal, which was located in Mohali SCL. Sadly, it all went up in flames. After that, no government restored it to the existence or to a program.
He also discussed how India lost the chance to convince Intel to establish a manufacturing facility there. “Intel arrived. This occurred under Dr. Manmohan Singh, and I believe Greg Barrett was in charge. I had in-depth conversations with them because they intended to build a sizable chip manufacturing unit here. They desired some land as well as financial assistance. We were unable to give them. It was a modest act on India’s part. We lost that factory permanently when it moved from India to, perhaps, Cambodia.
When asked about India’s potential to become a manufacturing hub, Mittal responded, “If you would have asked me this question – Will India regain its manufacturing place in the universe? – even three or four years back during the time of this government, I would have said no chance.” Mittal has openly praised the current government for streamlining procedures for the telecom industry and even issuing letters for 5G spectrum without any delay.
In instance, I never imagined that India would develop into a major center for the production of electronics during my lifetime. By the way, we import numerous types of gadgets worth over $600 billion. However, the fact that a significant portion of the value chain is on the soft side (the software side) gave me some solace. India’s participation indicated that we had lost the war for wireless hardware with software.
I can tell you now that circumstances have changed. Trusted sources are also a driving force. India has a great potential as a result of the global supply chain’s cracks that have formed as a result of the intense stress caused by the China issue. Combining that with PLI and DLI, which the government has also promoted, you can see manufacturing companies rushing up to accept those incentives and establish manufacturing facilities here. Again, the stars have aligned in this situation. They must leave China and move to India, where the government is embracing them.