India opens its first semiconductor assembly facility

NEW DELHI - India inaugurated its first semiconductor assembly and test facility on Feb 28, a milestone in the government’s push to reduce dependence on foreign chipmakers and stake a claim in a sector dominated by China.

Prime Minister Narendra Modi opened US firm Micron Technology’s Semiconductor Assembly, Test and Packaging unit in his home state of Gujarat, hailing the “dawn of a new era” for India’s technology ambitions.

“When young Indians look back in the future, they will see this decade as the turning point in our tech future,” Mr Modi told the event, which was broadcast on his official YouTube channel.

The plant will convert advanced semiconductor wafers from Micron’s global network into finished memory and storage products.

India’s semiconductor market has expanded from US$38 billion in 2023 to an estimated US$45 to 50 billion in 2024–25, with government targets of up to US$110 billion by 2030.

New Delhi is currently developing 10 chip projects worth more than US$18 billion, including two cutting-edge 3-nanometre design facilities in the cities of Noida and Bengaluru.

Mr Modi said at least three other semiconductor projects would begin production soon.

“India, which is known for software, is now also building its identity in hardware,” he said.

The prime minister linked the launch to deepening technological cooperation with Washington, noting India’s entry into the US-led Pax Silica alliance focused on artificial intelligence, critical minerals and supply-chain security – areas where China holds considerable sway.

“The entire world wants to secure these supply chains which are key for humanity’s future,” Mr Modi said.

The US ambassador to India, Mr Sergio Gor, said the opening marked “India’s entry into the global semiconductor supply chain as a manufacturer nation”.

“This is just the beginning,” Mr Gor said. AFP