PM Modi ji's push for Semiconductor is refreshing

M CHUBA AO

This is not only an era of higher aspirations. This is also the era of technology.

No society or country can remain stagnant with technological growth graphs. Our younger people, folks with lower income but sound education, tend to trust technology more than anything else. "I found this in Google," is an oft heard statement among youngsters and also middle-aged people. 

The fact of the matter is people’s relations with society by and large are more often influenced by technological orientation these days. 

Prime Minister Narendra Modi ji has a unique ability to catch people's pulse. This is what makes his appeal so magical with all sections of people - young and old and also men and women. Modi ji's engagements during his US trip include participating in a roundtable with CEOs of American firms working on cutting-edge technologies such as Artificial Intelligence, quantum computing, and semiconductors.

In his much talked about discussions with the US President Joe Biden, the Prime Minister held parleys on multiple topics, including the MQ-9B Predator drone deal and the setting up of a semiconductor plant in Kolkata.

In his address to the Indian diaspora in New York, he said the day is not far off when 'Made in India' chips will be doing good business even in America.

As we refer to the PM's US trip, we must also note that the Singapore leg of Modi ji's visit recently was marked by agreements on semiconductors, digital technologies, health and skill development. 

Modi ji and his newly elected Singaporean counterpart Lawrence Wong crucially also witnessed the exchange of the Memorandum of Understanding (MoU) on an India-Singapore Semiconductor Ecosystem Partnership. Not many people may realise. But it is obvious that the critical importance of Semiconductor chips in virtually everything from missiles to mobile phones and from cars to computers, the pact with Singapore has great geo-strategic and geo-economic importance.

We also may appreciate that the global chip industry is dominated by companies from a very small number of countries, and due to multiple reasons India is considered a late entrant into this high-tech but expensive race.

For its part, Singapore has a well-developed semiconductor industry. This is due to the early start made during the stint of the then Prime Minister Lee Kuan Yew.

In India's case, the Semiconductor Mission was launched in 2021 with a Rs 76,000 crore chip incentive scheme, under which the central government offered half the plant’s capital expenditure costs as subsidy. 

Notably in February 2024, the Union Govt under Modi ji approved semiconductor-related projects adding up to investments of about Rs 1.26 lakh crore.
That means we are now on track. Thanks to our respected Prime Minister's vision - something not understood by India's opposition whose leader somehow takes pleasure in presenting India in poor light whenever he is on foreign soil. Compliments to such parties and leaders for their USP. 

The centre has also announced a partnership between the Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corporation to set up a semiconductor fabrication plant. I am referring to Singapore deliberately because it is in South East Asia and geographically not far from our northeast region. The story of Singapore's success tales is certainly worth emulating. We must understand that what worked especially for Singapore were infrastructure and connectivity, stable business conditions and suitable human capital.

Right from the 1960s and 1970s, American chip makers, looking for lower labour costs, started to offshore parts of their production process to Singapore and countries in South-east Asia. But in our northeast India, we hardly focused on these.

We still continue to get lost in debate, arguments and protests over non issues. 

The Semiconductor sector is one area we can still do well provided we know how to make the most of the favourable atmosphere created by the Modi government. We have to tap the potentials.

In fact, I would like all northeastern Chief Ministers in our eight states (including Sikkim) should organise a joint meeting or a regional summit for tapping local potentials and eye the emerging Semiconductor growth graph.

Experts have already stated that India’s abundant land and competitive labour costs could encourage many semiconductor companies operating in Singapore to look towards us for expansion plans.

(M Chuba Ao is BJP national Vice President. Views are personal)