Asia Express - East Asian ICT
India to Pour US$30 Billion into Building Its Own Semiconductor Supply Chain Ecosystem
June 17, 2022

India recently announced that it will establish its own chip supply chain ecosystem while revamping its IT industry for US$30 billion, the Nikkei Asia reported on June 16. Pursuant to the plan, US$10 billion will be allocated for the establishment of two new fabs and two display plants while US$7 billion will be for the electronics industry to subsidize foreign companies such as Foxconn and Pegatron. The remaining US$13 billion will be reserved for services built around the IT and semiconductor industries such as telecom, networking communications, solar photovoltaic, advanced chemistry, and battery cells. The country aims to supply over 10% of chips to the globe with market size of US$110 billion by 2030.The chips to be made in India will be those based on mature 65nm to 28nm process nodes that are widely used in connectivity chips, display driver ICs, controller ICs for electronic products and electronic vehicles. Other than chips, India is set to produce LCD (Liquid Crystal Diode) displays for use in TVs, tablets, smartphones, and automobiles. 

Global semiconductor shipment value will top over US$613.5 billion in 2022, up 10.4% year-on-year, according to MIC (Market Intelligence & Consulting Institute), a government-backed research institute in Taiwan and a division of III (Institute for Information Industry). MIC also predicted shipment value of the Taiwanese semiconductor industry will reach NT$4.36 trillion (US$149.8 billion; US$1 = NT$29.1) and grow 17.5% year-on-year, higher than the global average.