India is preparing to produce its own chips. In an effort to become a new electronics manufacturing center, the country has managed to attract investment from major companies – Nvidia, AMD and Micron. As Commerce Minister Piyush Goyal said in an interview with CNBC, the first semiconductor is planned to be released no later than 2027.
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While producing cutting-edge chips without the expertise of companies like TSMC and Samsung is unlikely, Goyal is confident of success. “It’s a challenge, but we have the talent and we have the skills,” he stressed, citing his recent trip to Silicon Valley, where he visited a number of American companies and saw many Indians working in both manufacturing and management . Goyal believes that by attracting foreign investment into the country, India will be able to release its first chip within the given time frame.
In addition, the minister noted the prospects of the market, citing the example of Apple, which, in an attempt to diversify its supply chain and become less dependent on China, already produces 14% of all iPhones in India, while simultaneously expanding its retail network. The company also began manufacturing iPads, AirPods and Apple Watches in the country, creating 150,000 jobs and becoming the largest employer in Indian electronics.
Goyal also emphasized that India’s success is not dependent on China’s problems, saying, “India is not dependent on China. We rely on our own competencies and believe that our offer is much better.” And a recent meeting with Wall Street investors, including executives from BlackRock and Warburg Pincus, showed that many US investment firms are interested in setting up and developing data centers in India. However, experts warn that the country faces problems with infrastructure and bureaucracy.