Minister of State for Electronics and Information Technology, Rajeev Chandrasekhar, announced that the eagerly anticipated USD 2.75 billion semiconductor facility by the US-based Micron Technology, Inc. is scheduled for its groundbreaking ceremony this Saturday in Gujarat. Chandrasekhar expressed optimism, stating that the progress on the plant signifies an underlying growth trajectory that may not be immediately evident but will soon become apparent.

This ambitious project is being developed with substantial financial support from both the Union and State governments, covering 70% of the total project cost. Chandrasekhar reaffirmed the government's commitment to these subsidies, emphasizing that post-2026-27, when the Production-Linked Incentive schemes for various IT hardware and electronics manufacturing initiatives conclude, the industry is expected to attain global competitiveness.

Chandrasekhar cautioned, "The distinction between gradual and assured growth lies in our ability to achieve these remarkable milestones." He hinted at the fact that establishing semiconductor manufacturing in India is a gradual process and urged patience. He described the Micron plant as a foundational milestone for the industry's growth, echoing IT Minister Ashwini Vaishnaw's expectation that the plant will commence production by December 2024, in line with Micron's estimates.

Focusing on incentivizing semiconductor development, Minister Chandrasekhar highlighted India's dual approach, emphasizing both assembly and the prioritization of design and engineering. He referenced the recent stock market debut of Arm, a UK-based semiconductor design firm valued at USD 65 billion, which does not operate fabrication units for chip production.

Chandrasekhar further noted that Qualcomm, Inc. and NVIDIA Corporation, despite lacking their own fabrication units, outperform many larger firms in terms of valuation. The Design-Linked Incentive scheme, aimed at fostering the development of intellectual property for semiconductor technology, has garnered numerous applications, with seven already approved. The government is also actively working to facilitate collaboration between multinational corporations and Indian startups, provided that the resulting product patents are registered in India.

Minister Chandrasekhar defended the import licensing regime implemented for IT hardware, including laptops, servers, tablets, and all-in-one PCs. He stated that approximately 80% of the digital ecosystem's supplies come from foreign sources without explicitly mentioning China. The government is determined to ensure the reliability of these sources.

Chandrasekhar revealed plans to share a draft version of the "import management system" for IT hardware with industry representatives, underlining the importance of trust in the supply chain. He expressed the goal of increasing the proportion of locally assembled devices to meet 65-70% of local hardware demand within the next four years, currently standing at 8-10%.

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