India focuses on mature-node fab manufacturing to tap automotive, telecom, industrial electronics sectors

New Delhi [India], August 16 (ANI): While India is yet to make significant headway in setting up advanced semiconductor fabs, its broader chip-making ambitions are beginning to take shape with a sharp strategic focus on mature-node manufacturing.
Targeting the 28nm-65nm range, India aims to cater to the growing demand in sectors such as automotive, telecom, and industrial electronics.
In a detailed analysis, Bastion Research observed that, unlike the global race for cutting-edge nodes, India is positioning itself to fill a critical gap in the global supply chain by producing essential, widely used chips.
"Though today there is not much to share as far as India's progress in establishing semicinductor fab is concerned, one thing is clear, India's semiconductor ambitions are taking shape with a strategic focus on mature-node manufacturing, a smart move considering the vast demand for 28nm-65nm chips in sectors like automotive, telecom, industrial electronics, etc. While global giants dominate the cutting-edge node space, India is wisely positioning itself to manufacture mature nodes and filling a big gap," the report added.
The observation points out that India's semiconductor ambition today is quite similar to where Taiwan and South Korea were in the 1970s-1990s.
The observation highlights that India's role in system integration within the semiconductor value chain is rapidly evolving, positioning the country at the forefront of global capabilities.
With a deep pool of talent and a robust ecosystem, India excels in integrating semiconductor components into high-tech systems for sectors like automotive electronics, telecommunications, consumer devices, and medical technologies.
India is already delivering world-class, high-quality integration services. What sets India apart is its ability to match global standards, both in capability and talent, and its swift progression towards scaling these operations to meet the growing demand for advanced semiconductor-based solutions, the report added.
The observation highlighted that India is well poised to capture a larger share of the global market, as the China +1 strategy has become a powerful global trend, which is pushing companies to diversify their supply chains and look for alternatives to China.
"China +1 strategy has become a powerful global trend, pushing companies to diversify their supply chains and look for alternatives to China. This has fueled India's growth in system integration, as the country is increasingly seen as a reliable and cost-effective partner in the global supply chain," the analysis stated.
In 2021, the Indian government launched the Semicon India Programme (also referred to as Indian Semiconductor Mission (ISM) 1.0) with Rs 76,000 Crore in incentives to attract global manufacturers, build fabs, packaging units (OSAT & ATMP, discussed later in detail), and a local supply chain to reduce reliance on imports. The initial focus is on mature-node fabs (28nm to 65nm), not bleeding-edge nodes like 5nm or 3nm, which are dominated by TSMC and Samsung.
Earlier this month, the Centre cleared four new semiconductor manufacturing projects with a total investment of Rs 4,600 crore under the India Semiconductor Mission (ISM). These semiconductor units will be set up in Odisha, Andhra Pradesh, and Punjab.
The approvals take the total India Semiconductor Mission (ISM) portfolio to 10 projects across six states with cumulative investments of Rs 1.6 lakh crore.
Addressing the nation from the ramparts of the Red Fort on Independence Day, Prime Minister Narendra Modi announced that made-in-India semiconductor chips will be available in the market by the end of this year, marking a major milestone in India's technological journey.
India has already approved the construction of six semiconductor plants.
In May, the Union Cabinet approved India's sixth semiconductor manufacturing unit in Jewar in western Uttar Pradesh. It will be established near Jewar Airport through a joint venture between the HCL Group and Taiwanese electronics giant Foxconn.
Among the five semiconductor plants, four are in Gujarat: Tata Electronics-PSMC Semiconductor fab, CG Power-Renesas-Stars Microelectronics ATMP unit, Micron Technology's ATMP unit, and Kaynes Semicon ATMP unit, while the Tata Semiconductor Assembly and Test (TSAT) Unit is in Assam. (ANI)