The inauguration of the semiconductor Assembly, Testing, Marking and Packaging plant by PM Modi in partnership with Micron Technology at Sanand marks a defining moment in India’s industrial evolution. For decades, India has been celebrated for its prowess in software and services; yet, it has remained heavily dependent on imports for critical hardware components, especially semiconductors. With this plant, India signals not merely the arrival of a new factory but the beginning of a structural transformation-an entry into the global semiconductor value chain that will shape the country’s technological and economic destiny for decades to come.
Foreseeing upcoming trends is the hallmark of visionary leadership. The Industrial Revolution rewarded countries that mastered machinery and mass production. The next phase of global transformation is being driven by artificial intelligence, automation, advanced electronics and digital infrastructure. At the heart of this revolution lie semiconductors-the tiny chips that power everything from smartphones and automobiles to defence systems and AI servers. Recognising this, the Prime Minister has placed semiconductor manufacturing at the centre of India’s long-term development strategy.
It is true that India is far behind global leaders in semiconductor fabrication, such as Taiwan, South Korea, and the United States. However, every journey begins with a first step. The Micron facility represents precisely that step-an opening into an ecosystem that will expose Indian engineers, entrepreneurs and policymakers to global best practices in chip assembly, packaging and testing. Hindustan Aeronautics Limited, once reliant on foreign designs, today produces the indigenous Tejas LCA. Tata Motors benefited immensely from acquiring Jaguar Land Rover, absorbing advanced automotive technology and design capabilities. Understanding technology deeply-and where possible, adapting and improving upon it-is the foundation of industrial maturity.
China’s rise provides another instructive example. Beginning as a manufacturing hub dependent on Western and Japanese technologies, it gradually mastered processes, scaled production and eventually created its own global technology giants. Taiwan’s semiconductor success also evolved through strategic state support and international collaboration. India now stands at a similar inflexion point. The Micron plant may focus initially on assembly and packaging rather than advanced fabrication, but it embeds India within a critical segment of the global supply chain. Once part of the chain, scaling up becomes more feasible.
An important reality often overlooked in public debate is that nearly 90 per cent of semiconductors used globally are not cutting-edge chips but mature-node, medium-category components. These are widely used in consumer electronics, automobiles, industrial equipment and communication devices. India, with its rapidly expanding electronics manufacturing base, can realistically produce a large share of such chips. Domestic production will reduce dependence on imports and strengthen supply chain resilience. For a country aspiring to become a global manufacturing hub, secure access to semiconductors is indispensable. Moreover, the semiconductor ecosystem has powerful multiplier effects. When one major plant is established, ancillary industries follow, including suppliers of chemicals, gases, precision tools, logistics, packaging materials, and testing equipment. Employment generation extends beyond engineers to technicians, skilled workers and service providers. Universities and technical institutes will adapt curricula to meet new industry demands, nurturing a generation of chip designers and manufacturing specialists.
Policy alignment is crucial. Under the Semicon India programme, the government has offered fiscal incentives, faster approvals and infrastructure support to attract global players. Tax benefits and policy reforms aimed at promoting AI, data centres and server infrastructure further complement the semiconductor push. Challenges will undoubtedly arise.
The Micron plant is not the destination; it is the doorway. With more facilities planned in other states, India’s semiconductor footprint is expanding geographically and strategically. The world is seeking diversified supply chains, and India-stable, democratic and demographically dynamic-offers an attractive alternative.
The post India’s Mission Semiconductor appeared first on Daily Excelsior.