& ldquo; India will become the world's largest semiconductor manufacturing destination in the next five years and the center ensures the right ecosystem because Indian production is the cheapest in the world rdquo;, India's Minister of Electronics and IT Ashwini Vaishnaw said on Saturday's Express Adda.

In December 2021, the center announced a $10 billion semiconductor manufacturing plan, and its manufacturing plant is expected to be approved soon.

& ldquo; We are convinced that if the ecosystem is in placeIn the next four to five years, India will become the world's largest destination for semiconductor manufacturing. Our focus is on ensuring that the right ecosystem is built, & rdquo;Vaishnaw said.

Vaishnaw describes semiconductor manufacturing and its associated ecosystem as & ldquo; is very complex & rdquo;.

& ldquo; requires more than 250 very special chemicals and gases as well as reliable power supply & hellip;… if the voltage fluctuates for three seconds then a whole day's production will be affected & hellip;… and ultra-pure water that must be made & rdquo;, when asked about some components of the semiconductor ecosystem that must be in place the minister explained.

However, Vaishnaw says some challenges need to be addressed to start and sustain semiconductor manufacturing in India. & ldquo; it's only natural that people tend to wait and see when we start a new industry, & rdquo; he says.

Us-India high-tech alliance focuses on semiconductor supply chain

Us-India high-tech alliance focuses on semiconductor supply chain

The two countries will also jointly develop and produce jet engines and shell systems and promote a more flexible semiconductor supply chain.

In May last year, US President Joe Biden and Indian Prime Minister Narendra Modi jointly launched this initiative to enhance and expand the strategic science and technology partnership between the two sides, as well as defense industry cooperation & rdquo;.

Recently, the United States has actively courted its allies and countered China. The United States plans to deploy more Western mobile phone networks in South Asia, attract more Indian chip experts to the United States, and encourage military scientific and technological cooperation between companies of the two countries.

The United States is committed to an alliance with India, but still faces various obstacles. Reuters pointed out that the United States has many restrictions on the transfer of military technology and visas for foreign migrant workers; in addition, India's dependence on Russia has also become a hidden worry.

Despite the misgivings, America's top priority is to develop scientific and technological alliances. & ldquo;, the situation is largely about bets on high-tech and industrial innovation policy, which is at the heart of President Biden's entire strategy, Sullivan said. Chinese and Russian factors cannot be ignored, but it is also important to build a high-tech ecosystem. & rdquo

The Washington Post pointed out that US-India scientific and technological cooperation will focus on semiconductors, 5G and 6G wireless network infrastructure, and lunar exploration.

According to officials, the goal of the two governments is to help India develop a homegrown defense industry for its own defense and export purposes.

In addition, although India is a member of rdquo; (IPEF), the US-ldquo; Indo-Pacific economic architecture, India is not involved in the trade pillar negotiations.

Indian Semiconductor, is it really possible?

On December 15, 2020, the Ministry of Electronics and Information Technology (MEITY) launched the ldquo; letter of intent & rdquo;, expects to develop "incentives for manufacturers interested in setting up chip factories in India and what incentives to provide".

A year later, on December 15, 2021, the Joint Cabinet approved an incentive plan covering 760 billion rupees for silicon fab, other types of semiconductor fab, semiconductor design and display fab.

However, it is surprising that one year after the announcement of the plan, the approval process for the first batch of applications has not yet been completed, including three silicon wafer applications received on February 15, 2022.

However, it is surprising that one year after the announcement of the plan, the approval process for the first batch of applications has not yet been completed, including three silicon wafer applications received on February 15, 2022.

Japan, the United States and other countries that began to plan semiconductor incentive programs almost at the same time or later as India have already had a number of cases of new fab construction, and are even ready to put semiconductor equipment in the region.

Japan, the United States and other countries that began to plan semiconductor incentive programs almost at the same time or later as India have already had a number of cases of new fab construction, and are even ready to put semiconductor equipment in the region.

Japan, the United States and other countries that began to plan semiconductor incentive programs almost at the same time or later as India have already had a number of cases of new fab construction, and are even ready to put semiconductor equipment in the region.

Even if it is finally passed in 2023, will it miss the opportunity again because of other policy changes?

In addition to semiconductor manufacturers, it is also a question mark whether chip packaging and final product assembly can be carried out in India.

After all, India's official decision-making and bureaucracy have a good chance of stretching the process for a long time, leaving many manufacturers faced with the dilemma of whether to set up factories here or not.

Now Vietnam also wants to rob this big pie. The Vietnamese government has invested billions of dollars in setting up research and education centres to attract major chipmakers.

For example, Samsung, the world's largest memory chip maker, has promised to invest another $3.3 billion in Vietnam by 2022, with the goal of producing the chip by July 2023.

Although the Indian government claims that its semiconductor mission is a 20-year plan. Although it is welcome to draw up a long-term vision, without short-term practical action, this long-term vision for the future will not be able to get a piece of the pie in the next semiconductor boom.