India "Semiconductor Mission" To Begin Production Next Year: Micron And Others Part Of Desi Chip Wars?

India's first-ever semiconductor production facility is expected to go up in Gujarat. The construction of the facility should begin next month and production is slated to start next year.

Indian semiconductor manufacturing plant should start producing the country's first domestically manufactured microchips by the end of 2024, indicated sources familiar with the developments. Let's look at the latest developments, which could shape "Digital India".

Micron Semiconductor Factory Is Just One Of Many Planned?

India has set an ambitious target of locally producing semiconductors, the building blocks of CPUs, GPUs, and other chips that go into every piece of electronics. The country is hoping to get the first "Make In India" microchips before the next year ends.

India's minister of electronics and information technology, Ashwini Vaishnaw, has announced that US semiconductor company Micron Technology would start construction in August this year, on the $2.75 billion project.

India has earmarked $10 billion to kickstart local production of semiconductors, which will logically lead to the production of microchips, processors, and other miniature chips for electronics.

Manufacturing semiconductors is one of the most complex tasks. Apart from colossal cleanroom facilities, these factories need extreme precision and absolutely perfect planning.

Additionally, semiconductor factories need ancillary industries such as suppliers of chemicals, gases, and manufacturing equipment. Then there are supply chain partners as well as companies interested in setting up silicon wafer fabrication plants.

India Is Not Challenging AMD, NVIDIA, Intel, Samsung, TSMC, And Others

The Indian government recently reopened bids for its $10 billion subsidy program for chipmakers. Incidentally, India has tweaked or relaxed the specifications for semiconductors. The country is seeking proposals to produce "mature nodes" of 40 nanometers or above.

During the first round of bids, India demanded chip fabrication capabilities of 28 nanometers. Needless to say, none of the applicants qualified, forcing India to reconsider opting for a larger fabrication node.

Microchips fabricated on the 40nm node will not be anywhere close to the efficiency and performance from 14nm and lower chips that Intel, AMD, TSMC, Samsung, and others, are successfully fabricating, and that too, in large quantities. However, India clearly has to start somewhere, and 40nm microchips could help the country.