New Delhi, June 8: India is rapidly strengthening its position in global electronics and semiconductor manufacturing, with major investments in component production, chip fabrication, design capabilities, and supporting industries, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said on Monday.
In an exclusive interview with ANI, Vaishnaw revealed that India exported electronics components worth Rs 35,000 crore to China last year, highlighting the country’s growing capabilities in advanced manufacturing and its gradual move up the global value chain.
“Last year, we exported Rs 35,000 crore worth of components to China. We are manufacturing components, and already 75 factories for electronics components are under construction. About 250 component manufacturing factories will be set up over the next two to three years,” the minister said.
Vaishnaw noted that India’s manufacturing journey mirrors the path followed by major manufacturing economies such as China, Taiwan, and Vietnam. According to him, countries typically begin with finished-product manufacturing, advance to module production, and then move into component manufacturing. India has already reached the module-manufacturing stage and is now rapidly expanding component production.
Rejecting criticism that India’s electronics industry is limited to assembly operations or “screwdriver technology,” Vaishnaw said the country is steadily building deeper manufacturing capabilities across the value chain.
The minister emphasized that the expansion of the electronics sector has generated substantial employment opportunities. According to him, nearly 25 lakh jobs have been created in electronics manufacturing, providing high-quality employment across the country.
Highlighting India’s engineering capabilities, Vaishnaw pointed to the development of the Vande Bharat train as an example of indigenous innovation, stating that it was fully designed by Indian engineers and manufactured by Indian technicians, welders, and fitters.
He also noted that while countries such as China and South Korea began their manufacturing transformation in the early 1980s, India’s major manufacturing push started only within the last decade. Despite the later start, he expressed confidence that India’s strong design capabilities, entrepreneurial talent, and growing international trust would enable the country to emerge as a major global manufacturing hub.
According to the minister, many countries increasingly view India as a trusted partner for manufacturing. He said counterparts from Europe, the United States, and other regions have expressed interest in sourcing electronics products from India because of the country’s reliability and credibility.
The government’s efforts to strengthen electronics manufacturing have been supported by the Electronics Component Manufacturing Scheme (ECMS). In March this year, the government approved 29 additional proposals under the scheme. The Ministry of Electronics and Information Technology (MeitY) said these projects involve a projected investment of Rs 7,104 crore and expected production worth Rs 84,515 crore. The projects are also expected to generate more than 14,000 direct jobs.
Semicon 2.0 to Focus on Chip Design and Ecosystem Development
Vaishnaw also outlined plans for the next phase of India’s semiconductor strategy, known as Semicon 2.0, which will focus on chip design, semiconductor manufacturing equipment, chemicals, gases, and other critical elements required for a complete semiconductor ecosystem.
The minister said India has made significant progress since launching the Semiconductor Mission on January 1, 2022. Of the 12 semiconductor plants approved under the programme, two facilities—operated by Micron and Kaynes—have already commenced commercial production.
He added that CG Semi is expected to begin commercial production in mid-July, while a fourth facility is expected to become operational before the end of the year.
“We started the journey just on January 1, 2022. In such a short time frame, we have been able to reach this level,” Vaishnaw said.
The minister noted that India has already trained more than 75,000 engineers in semiconductor-related fields, creating a strong talent pool to support the industry’s growth.
According to Vaishnaw, Semicon 2.0 will go beyond chip fabrication and focus on building the broader ecosystem needed for semiconductor manufacturing. This includes developing domestic capabilities in semiconductor equipment manufacturing—an industry currently concentrated in only a few countries worldwide.
“We would like to bring those manufacturing and design activities to India,” he said.
The minister also highlighted the growth of India’s semiconductor startup ecosystem. Under the first phase of the Semiconductor Mission, approximately 40 semiconductor design startups emerged and have begun attracting venture capital funding, marking significant progress in the country’s deep-tech sector.
Under Semicon 2.0, chip design will become the top priority, followed by the development of semiconductor manufacturing equipment, chemicals, and gases. Vaishnaw noted that manufacturing a semiconductor chip requires approximately 250 specialized chemicals and 50 different gases, making the development of these supporting industries essential for creating a self-sustaining semiconductor ecosystem.
Expressing optimism about future investment, the minister said the progress achieved so far has generated strong international interest and is expected to attract even greater participation from global semiconductor companies in the next phase of the mission.
The expansion of electronics component manufacturing and the implementation of Semicon 2.0 are expected to strengthen India’s position in global technology supply chains, enhance domestic manufacturing capabilities, attract foreign investment, and create thousands of additional high-quality jobs in the years ahead. (ANI)
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