Background:
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India is facing a semiconductor supply crunch.
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India is planning to roll out a mega multi-billion-dollar capital support and production-linked incentive plan to push the manufacturing of semiconductors.
Facts:
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India imports almost all semiconductors to meet demand estimated to reach around $100 billion by 2025 from about $24 billion now.
Previous efforts to improve the semiconductor industry had failed due to lack of heavy investments required in the manufacturing as well as the lack of uninterrupted clean water and electricity
What are the opportunities for India?
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‘China plus 1’ policy of companies: Many global companies are deciding to have a diverse supply chain for semiconductors and are investing in countries other than China to reduce their risk. This presents investment opportunities for India.
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Domestic demand: The government expects domestic production of electronics to move up to $350-400 billion by 2025, against the estimated $75 billion now.