I planned to set up semiconductor factory in India 2 decades ago, but government was shackled then: PM Modi

Why in news

PM Modi announced the goal of having five functional semiconductor factories in India by 2026, highlighting the shift from a manufacturing-constrained past to a global electronics hub.

Background

India is currently the world's second-largest mobile phone manufacturer. Mobile phone manufacturing in India has seen a 33% growth since 2014. The CG Semi facility in Sanand, Gujarat, is the third unit set for commercial chip packaging production.

Facts for Prelims

• FactIndia is the world's second largest mobile phone manufacturer as of 2024
• FactIndia aims to have five functional semiconductor factories by 2026
• PlaceSanand, Gujarat: Location of the CG Semi chip packaging facility
• FactMobile phone manufacturing in India increased by 33% between 2014 and 2024

For Mains

Q. Discuss the significance of establishing a domestic semiconductor manufacturing ecosystem for India's goal of becoming a global electronics hub and a leader in AI.

Dimensions to cover in your answer

• Supply chain resilience: Reducing dependence on imported high-end chips to secure critical electronics infrastructure
• Skill-gap bottleneck: Requirement for specialized engineering talent and R&D labs to move beyond assembly to design
• Incentive structure: Balancing fiscal subsidies (PLI schemes) with the need for long-term infrastructure and power stability

Keywords: Semiconductor ecosystem · Electronics manufacturing · Supply chain resilience · Skill development · Strategic autonomy

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