Wasn’t easy to cut through perception that India won’t make semiconductors: Rajeev Chandrasekhar

The central government approved the nation’s first commercial semiconductor fabrication plant on February 29. Over the past six decades, India has harboured ambitions of participating in the semiconductor ecosystem, implementing various schemes in pursuit of this goal. The latest initiative, introduced on December 15, 2021, allocated a substantial financial incentive of Rs 76,000 crore for semiconductor and display fab development. 

Remarkably, it took two years, two months, and 19 days from the scheme’s announcement for the approval of the first fab proposal. However, this journey was far from easy.

Rajeev Chandrasekhar, Union Minister of State, Ministry of Electronics & IT, told Business Today, “We're building investment, seeking investments for the next decade and this is not just about snapping a finger and making an announcement.” He further explained, “There's a lot of confidence that needs to be built and a lot of commitment that needs to be made. These are not simple investments of $11 billion, $10 billion or $3 billion as there is a very great deal of sophistication that’s required for chip manufacturing. It is at the intersection of science and engineering. It is manufacturing of a kind that nobody has ever seen in the country before nobody has experienced it. So, all of that meant that we needed to be patient.”

The semiconductor landscape is currently dominated by a select few global giants with extensive experience and expertise in chip manufacturing. Persuading these established players to establish manufacturing plants in India proved to be a formidable challenge, particularly in light of the country's past unsuccessful attempts to attract fabs. Unsurprisingly, the impetus for this ambitious initiative came from the highest echelons of leadership. Prime Minister Narendra Modi personally engaged with leaders of prominent semiconductor companies, and Chandrasekhar took the initiative to make compelling presentations, recognising the need for top-level involvement to overcome the challenges inherent in this endeavour.

“I did almost every presentation to all of these companies myself; I did a lot of the investment promotion, policy advocacy, and the seriousness of India because the semiconductor ecosystem is small in numbers, large in impact. The global semiconductor majors have been burned by India in the past where India has said we will do it time and again, and then every time, we didn't do. So, it was not easy to cut through the cynicism, cut through the perception.”

He further says, “In the first presentation that I used to make, they used to say you don't have the talent for semiconductor, you don't have the money for semiconductors, you don't have the supply chain for it. So, one by one by one each of those issues were addressed. When they say you don't have the money for it, we explain we have the money. For talent, we are creating the talent.”

Despite facing stiff competition from other highly competitive and technologically advanced locations, getting names such as Micron, Renesas, Powerchip Semiconductor Manufacturing Corporation (PSMC) to contribute, only demonstrates India’s capability to attract significant investments.

“We were nothing two years ago, we had absolutely no footprint in the semiconductor ecosystem and were absolutely absent and here we are. What we have achieved in the last two years and two months,  is certainly by any stretch of imagination, tremendous,” he adds.