When Chips Are Down, You Can Bet On India, Says PM Modi

India is the "right place" for the semiconductor industry in view of the country's aspirational market, growing manufacturing base and reformist government, Prime Minister Narendra Modi said on Wednesday, while addressing the Semicon India 2024 event in Greater Noida.

"When the chips are down, you can bet on India...In 21st century India, the chips are never down," Modi said.

This is the right time to be in India, the prime minister said as he called upon global semiconductor players to invest in the country. "India's semiconductor industry has special diodes, energy flows both ways from the government and investors."

"Earlier, the status was 'let the chips fall where they may'. Today, it is to produce more chips," Modi said, adding that the government supports 50% in costs for companies looking to invest.

Currently, five semiconductor projects with Rs 1.5-lakh-crore investment are underway, and several other projects are in the pipeline, he noted.

The country provides an integrated ecosystem for chip companies, Modi said. Around 20% of the global talent in the chip designing segment is Indian. The government is committed to develop an 85,000-strong talent pool of chip engineers and technicians, he said.

India's aspirational and tech-oriented society offers a conducive atmosphere for the semiconductor industry. "We are a big consumer of chips today, and have also built digital public infrastructure on top of these chips."

According to Modi, the government's goal is to make the country a key supplier of chips in the future. "India should aspire to have an India-made chip in every device in the world," he said.

Earlier, Union Minister for IT and Electronics, Ashwini Vaishnaw said at the event that establishing semiconductor units will drive exponential growth in industries like automobile and consumer electronics.

Chip startups based in India have generated interest among venture capitalists, the minister said.

Yogi Adityanath, the chief minister of Uttar Pradesh, where the Semicon India event is being held, said the state "wants to be the hub for India's semiconductor ambitions".

Around 55% of mobile parts in India are manufactured in Uttar Pradesh. Top companies like Mediatek, Qualcomm, NXP, and Synopsis are already present in the state, he noted.

The three-day Semicon India 2024 concludes on Sept. 13. The event's focus is on discussing the semiconductor ecosystem in India.