New Delhi, Mar 28 (KNN) The global semiconductor industry, valued at $750 billion, is poised for explosive growth in the next 6-7 years, and India is strategically positioned to seize this lucrative opportunity, according to Ashwini Vaishnaw, Union Minister for Electronics & IT, Telecom, and Railways.

Addressing the Business Standard Manthan summit on Wednesday, Vaishnaw outlined India's key competitive advantages.

With nearly one-third of the semiconductor industry's global talent located in India, the country boasts a vast pool of skilled professionals capable of conceptualising, designing, and validating chips for fabrication.

Despite its modest per capita income, India has prioritized renewable energy, with an impressive 42 per cent of its power generation capacity coming from green sources.

Gujarat's Dahej region hosts one of the world's largest chemical manufacturing hubs, a critical component of the semiconductor supply chain.

Top executives from 45 global semiconductor giants have endorsed India as the next natural destination, citing challenges elsewhere and India's compelling proposition.

Vaishnaw dismissed concerns about prioritising manufacturing over services, asserting that India's scale allows for a multifaceted approach, leveraging both sectors' employment opportunities.

The Tata Group's chip fabrication plant in Dholera, Gujarat, is set to commence operations by December 2026, marking a significant milestone in India's semiconductor ambitions. Two additional facilities in Sanand, Gujarat, and Morigaon, Assam, will assemble semiconductors.

Vaishnaw highlighted the establishment of India's first chip fab as one of the most satisfying achievements during his ministerial tenure, underscoring the government's commitment to nurturing a robust semiconductor manufacturing ecosystem.

While manufacturing remains a key focus area, the minister emphasised that the technology services sector will also receive substantial policy support, recognising the substantial employment prospects in both domains.

With a policy roadmap favouring domestic manufacturing, Vaishnaw predicted that the manufacturing sector, currently employing approximately 30 million people, would double its workforce within the next five years.

He cited the example of Indian-designed and manufactured telecom radio equipment being deployed in the United States and Europe as a testament to the country's growing prowess.

(KNN Bureau)