India's semiconductor ambitions received a significant boost with Lam Research, a US-based semiconductor equipment company, announcing an investment of over ₹10,000 crore in the country. IT Minister Ashwini Vaishnaw described it as a "milestone" in India's semiconductor journey and a "big vote of confidence" in Prime Minister Narendra Modi's vision for the sector.
This investment aligns with India's strategy to become a global semiconductor hub by reducing reliance on imports and strengthening domestic chip manufacturing. It is part of the government's broader efforts to attract foreign players through incentives and policy support under its Semiconductor Mission.
The announcement comes after PM Modi's speech at the AI Action Summit in Paris, where he highlighted the role of artificial intelligence (AI) in shaping future economies, security, and society. Modi called for global cooperation in AI governance and international standards to tackle challenges like cybersecurity threats, deepfakes, and disinformation.
He pointed to India's leadership in AI adoption and digital infrastructure, citing the large AI talent pool and cost-effective digital public infrastructure for over 1.4 billion people. His vision for AI governance includes open-source AI models, sustainable AI development, and ensuring AI-driven benefits reach all, particularly the Global South.
Semiconductors are crucial for powering AI technologies, making Lam Research's investment particularly important. As AI continues to transform industries, a strong domestic chip manufacturing ecosystem is vital for India to remain competitive. The government has been actively engaging with global semiconductor firms, including recent collaborations with Micron Technology and Tata Group, to build a robust supply chain.
The ₹10,000 crore investment is expected to enhance India's chip manufacturing capabilities, supporting AI advancements and broader electronics production. It also reflects growing confidence among global tech firms in India's policy environment and talent pool.