Democracy, demography and dividend will double and triple the businesses in India: PM Modi

The Prime Minister, Narendra Modi inaugurated SemiconIndia 2023 at Mahatma Mandir in Gandhinagar, Gujarat today. The theme of the Conference is ‘Catalysing India’s Semiconductor Ecosystem’. It showcases India’s semiconductor strategy and policy which envisions making India a global hub for semiconductor design, manufacturing and technology development.

Industry leaders expressed their views on the occasion. President and CEO SEMI Ajit Minocha said that for the first time in India’s history, geopolitics, domestic politics and private secret capacities are aligned in India’s favor to become a player in semiconductor production. He said investment by Micron is making history in India and will set the stage for others to follow. He said having leadership that understands the semiconductor ecosystem is what makes the present system different. He said India would be the next powerhouse in semiconductor in Asia.

Mark Papermaster, EVP and CTO AMD, recalled CEO AMD meeting with the Prime Minister at the White House recently. He announced that AMD will invest approximately 400 million dollars in the next 5 years. He said AMD will enhance its R&D capabilities. “We will build our largest design center in Bengaluru”, he said.

Dr Prabu Raja, President Semiconductor Product Group Applied Materials said that with the strong vision of Prime Minister Modi India is poised to play a central role in the global semiconductor industry. “We firmly believe that this is India’s time to shine”, he said. No company or country can overcome challenges in the sector alone. It’s time for collaborative partnership in this sector. This new collaborative model can provide us to be a catalyst in the sector,  he emphasized. “I would like to thank you for considering us a valuable partner in India’s semiconductor vision”, he added.

Anirudh Devgan, President and CEO Cadence said it is really good to see India finally investing into semiconductors. He expressed happiness that the government is investing in the entire ecosystem.

Anil Aggrawal, Chairman, Vedanta Group said that experts feel that Gujarat is the right place for the silicon valley of India. He highlighted the Prime Minister’s vision of creating new opportunities for the youth of India. “We have seen how India has transformed in the last decade and aspirations of young Indians are really high.

Sanjay Mehrotra, President and CEO of Micron Technology thanked the Prime Minister for the global vision to turn India into a global semiconductor hub. Mehrotra expressed pride in the setting up of a semiconductor assembly and test facility for memory in the state of Gujarat and said that this project is going to create nearly 5,000 jobs along with 15,000 additional jobs within the community in the coming years. He thanked both the Central and State Governments for their support in setting up the semiconductor industry in the state. He also thanked the Prime Minister for his support in fostering an environment of innovation, business growth and social progress that is creating solid results. “Digital India and Make in India are creating a truly transformative energy that will continue to drive positive progress”, he further said.

Mr Young Liu, Chairman of Foxconn highlighted the buffalo spirit of the Taiwan Semiconductor Industry, which is the ability to work hard without complaining and said that the same spirit can be applied in India. Referring to the high ‘say-do’ ratio of the Indian Government, Mr Liu underlined the importance of trust and working together to overcome the challenges just like Taiwan did many years ago. Mr Liu expressed confidence and optimism in the will and determination of the Indian Government to lead the semiconductor industry. “IT stands for India and Taiwan”, Mr Liu said quoting the Prime Minister and assured that Taiwan will be India’s most trusted and reliable partner in the semiconductor industry.

Addressing the gathering, the Prime Minister emphasized that events like Semicon are like software update where experts and industry leaders meet and share with each other. “It is important for the synchronization of our relationship,” the Prime Minister said. Shri Modi who witnessed the exhibition set on the venue, expressed delight in the innovations and energy of the sector. The Prime Minister urged everyone, especially the younger generations to visit the ongoing exhibition and understand the power of the new technology.

Recalling the participation in the first edition of Semicon last year, the Prime Minister highlighted the questions raised at the time about investing in India in the semiconductor industry. He underlined that the questions have transformed over a period of one year from ‘Why invest in India’ to ‘Why not invest in India’. “There has been a directional change due to the efforts of the industry leaders”, Shri Modi said as he felicitated them for showing their belief in India. He said that the industry leaders have conjoined the aspirations and the capability of India with their own future and dreams. “India does not disappoint”, he exclaimed. Modi underlined the abundance of opportunities in India of the 21st century and said that the country’s democracy, demography and dividend will double and triple the businesses in India.

Referring to Moore’s Law with exponential growth at its heart. He said that we are witnessing the same exponential growth in India’s digital and electronic manufacturing sector. He informed that India’s share in global electronic manufacturing has increased manifold. In 2014 India’s electronic manufacturing was less than 30 billion dollars, which has crossed 100 billion dollars today. The export of electronics and mobile devices has doubled in the last 2 years. Throwing light on the technological developments in India post 2014, the Prime Minister informed that there were only two mobile manufacturing units in India before 2014 whereas today, this number has gone beyond 200. He also informed that the number of broadband users in the country increased from 6 crores to 80 crores while the number of internet connections rose from 25 crores to more than 85 crores today. Referring to these statistics, the Prime Minister emphasized that it not only signifies India’s progress but is also an indicator for growing businesses in the country. Shri Modi highlighted the crucial role of India in the semicon industry’s target of exponential growth.

“The world is witnessing the Industry 4.0 revolution today”, Modi remarked as he noted that the basis for any industrial revolution in the world is the aspirations of the people in that particular sector. “Industrial Revolutions in the past and the American Dream had the same relationship”, the Prime Minister said as he drew an analogy between the Industry 4.0 revolution and Indian aspirations.  He said that Indian aspirations are the driving force behind the development of India. He touched upon the recent report which states that poverty is declining at a very fast rate leading to the emergence of a neo-middle class in the country. Noting the tech-friendly nature and the eagerness of the Indian people towards technology adoption, the Prime Minister said that cheap data rates, quality digital infrastructure and seamless power supply in the villages are burgeoning the consumption of digital products. “Be it health, agriculture or logistics, India is working towards a vision of smart technology usage”, Modi said. He noted that there are people in India who may not have used a basic home appliance but are going to make use of interconnected smart devices. Similarly, the Prime Minister said, a particular student population might not have used a bicycle before, but they are primed to use smart electric bikes today. “The growing neo-middle class of India has become the powerhouse of Indian aspirations”, the Prime Minister said. He underlined that the chip-making industry is a market filled with opportunities and expressed confidence that those who begin early are bound to get a first-mover advantage over others. 

Referring to the side effects of the pandemic and the Russia-Ukraine war, the Prime Minister said that the world needs a reliable supply chain. “Who can be a more trusted partner than the world’s largest democracy”, he said. He expressed happiness about the growing global trust in India. “Investors trust India as it has a stable, responsible and reform-oriented government. The industry has faith in India as infrastructure is developing in every sector. The tech sector believes in India as technology is growing here. The Semiconductor Industry trusts India as we have a massive talent pool”, he said. “Skilled engineers and designers are our strength. Anyone who wants to be a part of the world’s most vibrant and unified market has faith in India. When we tell you to make in India, it also includes that let’s make for India, Make for the world”, he added.

The Prime Minister said that India understands its global responsibilities and is working on a comprehensive roadmap with friendly countries. That’s why India is building a vibrant semiconductor ecosystem. Recently, the National Quantum Mission was approved. Furthermore, the National Research Foundation Bill is also going to be introduced in the Parliament. The engineering curriculum to create a semiconductor ecosystem is being revamped. He informed that more than 300 such prominent colleges have been identified in India where courses on semiconductors will be available. The Chips to Startups Program will help engineers. “It is estimated that in the next 5 years, more than one lakh design engineers are going to be produced in our country. India’s growing start-up ecosystem is also going to strengthen the semiconductor sector”, he added.

Giving the analogy of a conductor and insulator where energy can pass through conductors and not through insulators, the Prime Minister said that India is ticking every checkbox to become a good energy conductor for the semiconductor industry. Noting the crucial requirement of electricity for this sector, the Prime Minister informed that  India’s solar power installed capacity has increased more than 20 times in the last decade and a new target of 500 GW of renewable energy capacity has been set to be achieved by the end of this decade. He also touched upon major steps taken for the production of solar PV modules, green hydrogen and electrolyzers. He underlined that the policy reforms taking place in India will have a positive impact on the construction of the semiconductor ecosystem. He also informed about the several tax exemptions that have come into effect for the new manufacturing industry and highlighted the lowest corporate tax rate in India, faceless and seamless taxation process, abolition of archaic laws, compliances to increase ease of doing business and special incentives for the semiconductor industry. Shri Modi stated that these decisions and policies are a reflection of the fact that India is rolling out red carpets for the semiconductor industry. “As India moves forward on the path of reform, new opportunities will be created. India is becoming an excellent conductor for semiconductor investments”, he added.

The Prime Minister said that India understands the needs of the global supply chain, raw materials, trained manpower and machinery. “The sector in which we have worked closely with private players has touched new heights. Be it the space sector or geospatial sector, we have got excellent results everywhere”, the Prime Minister emphasized.  He also informed about the critical decisions taken on the basis of feedback received. He talked about the increased incentive under the Semicon India Programme. He elaborated that now technology firms will be given 50 percent financial assistance to set up semiconductor manufacturing facilities in India. “We are continuously carrying out policy reforms to accelerate the growth of the country’s semiconductor sector”, Modi said.

Reflecting on India’s G20 theme of ‘One Earth, One Family, One Future, the Prime Minister emphasized that the same spirit is applied behind making India a semiconductor manufacturing hub. He emphasized that India wants the whole world to benefit from its skill, capacity and capability. He stressed boosting India’s potential for Global Good and a better world. The Prime Minister welcomed the participation, suggestions and thoughts in this venture and assured the industry leaders that the Government of India stands with them at every step. Concluding the address, the Prime Minister recalled his address from the Red Fort and said, “This is the time. This is the right time. Not just for India but the whole world.”