Industry executives are exultant that global semiconductor companies will see the India advantage, but a large local demand holds the key
India’s semiconductor demand was estimated at about $26 billion in 2022 and projected to reach $272 billion by 2032. The country’s electronics ministry envisions an overall products manufacturing output of $300 billion by 2026, versus $75 billion in 2022.
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“The ecosystem from across the globe will mobilise to have India as their preferred semiconductor destination,” N Chandrasekaran, chairman of Tata Sons, said in a statement on March 13, to mark the beginning of construction of two chip factories by the Indian conglomerate.
One will be a wafer fabrication plant and the other an OSAT (outsourced semiconductor assembly and testing) facility. The former in Dholera, Gujarat, and the latter at Jogiroad, Assam, “2,500 km apart, will have a lasting impact on the nation,” the Tata Group boss said.