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HomeAutoPM Modi Bats For Semiconductor Self Sufficiency Amidst Auto Chip Shortage

PM Modi Bats For Semiconductor Self Sufficiency Amidst Auto Chip Shortage


Many automakers have been struggling as a result of world semiconductor scarcity


The Prime Minister wants semiconductors to be manufactured under Make in India
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The Prime Minister desires semiconductors to be manufactured underneath Make in India

India’s Prime Minister Narendra Modi has mentioned that the nation has no possibility however to be self-reliant on semiconductors. This comes at a time of the worldwide semiconductor disaster and the geo-political tensions between China and the US alongside the newest challenge associated to the Russian invasion of Ukraine. 

“India has no option but to be ‘atmanirbhar’ when it comes to semiconductors. This sector has brought new possibilities for Make in India,” Modi mentioned on March 3 at a post-budget webinar on ‘Make in India for the World’ organized by the Department for Promotion of Industry and Internal Trade.

The semiconductor scarcity has notably impacted the auto sector internationally alongside client electronics. Most semiconductors are made in Taiwan, South Korea and the US break up throughout fabs of the largest chipmakers – TSMC, Samsung, and Intel. 

The Modi authorities has introduced a Rs 76,000 crore manufacturing linked incentive scheme for home semiconductor and show board manufacturing. 

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“A county as large as India will never be able to progress and give opportunities to our youth if it only remains a market. We have seen during the pandemic how global supply chains have been destroyed… The world today sees India as a manufacturing powerhouse. Our manufacturing sector is 15 percent of India’s GDP. But there are infinite possibilities in front of Make in India. We must work together to make a robust manufacturing base,” the prime minister mentioned. 

There has been chatter of Foxconn partnering with native gamers for manufacturing chipsets in India. In the late 2000s, Intel was fascinated by making a Fab in India, however that plan by no means got here to fruition. Since then, because of the shortage of fresh water and fixed electrical energy, India has by no means been thought of a conducive marketplace for manufacturing semiconductors.

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Many automakers have needed to delay the launch of autos or have not managed to satisfy manufacturing schedules due to the shortage of chipsets. In truth, within the case of Volkswagen, it needed to take away the electrical ORVMs from its vehicles as a result of it could not procure microcontroller chips for a similar. 

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