India to invest $30 billion in tech sector and chip supply chain

The chip shortage has done enough harm to the electronics market and the world is facing its consequences ever since the 2020 pandemic. Despite this, the chip demand in the Indian market is ever-expanding. By 2030, the chip demand in India is said to reach $110 billion, and by that time,  India expects to strengthen the supply chain and the entire tech sector. As a result, India is all set to invest $30 billion in the technology sector including the semiconductor supply chain.

The $30 billion will be spent to restructure the Indian IT industry and boost the local production of semiconductors, displays, advanced chemicals, networking, and telecom equipment as well as batteries and electronics.

As per Gourangalal Das, the director-general of the India-Taipei Association (via Nikkei Asia), “There is a rise in demand for semiconductors,” and the chip demand rate in India will double the global rate each year.

“By 2030, India’s semiconductor demand will reach $110 billion. So by that time, it will be over 10% of global demand,” he continued.

He further stated, “We need some assurance that our demand for semiconductors is not held hostage to the vagaries of supply chains — something that we saw during the pandemic.”

In India, the chipsets made will be more “mature,” which is unlike the aim of the U.S and European Union which aim for the most cutting-edge chip production. Having said that, these chips will be less advanced and will be based on 65nm and 28nm fabrications. The most common use cases of this production technology will be connectivity chips, display drivers, controllers chips for electronic products, and electric vehicles.

Das said that India has an ample pool of engineers that will eventually help attract foreign investors and help overhaul the local electronics industry.

Speaking of collaborations, He revealed, India is open to working with Taiwanese tech players who have expertise in semiconductors, displays, and electronics. One of the early players to have already collaborated with an Indian player is Foxconn. The Taiwanese company has tied hands with Vedantu Limited to build a semiconductor plant in India.

Other than chips, LCDs are being worked up too with this investment. Displays for TVs, tablets, smartphones, and automobiles are expected to be made in India. The focus for displays will not only be on LCD technology but also on OLED panels, which have now become mainstream in premium and foldable phones.

Out of the $30 billion, around $10 billion will go towards two chip facilities and two display plants. Around $7 billion will go towards the electronic industry, which includes manufacturing giants like Foxconn and Pegatron. The rest of the $13 billion will go towards services such as telecommunications, battery cells, networking, solar photovoltaic, and sophisticated chemistry.

The post India to invest $30 billion in tech sector and chip supply chain appeared first on BGR India.