With the Make in India, Digital India, and Start-up India programmes, India has witnessed a substantial spike in demand for electronic products in the last few years. The country’s position as the second-largest mobile phone manufacturer in the world, and the surge in internet penetration among the population are creating a huge demand. <\/p>\n\n\n\n
India\u2019s first big step<\/strong>: On Tuesday, a Vedanta<\/a>-Foxconn JV signed an MoU with the Gujarat govt to set up a semiconductor and display unit in the state. The JV plans to invest<\/a> Rs. 1.54 lakh cr.\u00a0<\/p>\n\n\n\n Zoom out:<\/strong> Globally, the demand for semiconductors has reached a new high after supply chains were broken due to the pandemic, followed by geopolitical tensions. As a result, the production of various items, from cars to consumer durables, got disrupted worldwide. <\/p>\n\n\n\n Scramble to be self-reliant: <\/strong>The world now wants to diversify the source of chipsets. India, in particular, does not want to rely on just a few American, Japanese, South Korean, or Taiwanese semiconductor manufacturers.<\/p>\n\n\n\n India\u2019s semiconductor needs are context:<\/strong> India is one of the largest consumers of electronic products in the Asia-Pacific region.<\/p>\n\n\n\n Existing chipmakers in India:<\/strong> Saankhya Labs, ASM Technologies<\/a>, Broadcom, Chiplogic Technologies, CDIL, MosChip Semiconductor Technologies<\/a>, Einfochips Semiconductor, Tata Elxsi<\/a>, Semiconductor Lab, and NXP Semiconductors and more. However, their output is not enough to match the demand.<\/p>\n\n\n\n Driving growth<\/strong>: The government’s National Policy on Electronics aims to facilitate a turnover of $400 bn in domestic manufacturing by 2025<\/p>\n\n\n\n Global competitive landscape:<\/strong> TSMC is the largest semiconductor manufacturer in Taiwan and the world and has an annual revenue of $65.96 bn.<\/p>\n\n\n\n