Can India catch up with the US, Taiwan and China in the global chip race?
Al Jazeera
India aims to be an additional manufacturing hub for companies wanting to expand production beyond China.
In October, a small electronics manufacturer in the western Indian state of Gujarat shipped its first batch of chip modules to a client in California.
Kaynes Semicon, together with Japanese and Malaysian technology partners, assembled the chips in a new factory funded with incentives under Indian Prime Minister Narendra Modi’s $10bn semiconductor push announced in 2021.
Modi has been trying to position India as an additional manufacturing hub for global companies that may be looking to expand their production beyond China, with limited success.
One sign of that is India’s first commercial foundry for mature chips that is currently under construction, also in Gujarat. The $11bn project is supported by technology transfer from a Taiwanese chipmaker and has onboarded the United States chip giant Intel as a potential customer.
With companies the world over hungering for chips, India’s entry into that business could boost its role in global supply chains. But experts caution that India still has a long way to go in attracting more foreign investment and catching up in cutting-edge technology.
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