Page 12 - The Machining World Express May 2024

TOP STORY THE MACHINING WORLD EXPRESS | MAY 2024

India’s INDIA’S SEMICONDUCTOR INDIA’S SEMICONDUCTOR
LANDSCAPE TRANSFORMATION
PROGRAM PROGRESS
Semiconductor To address these challenges, the Indian The Indian government’s commitment to the

government recently approved three new semiconductor and display manufacturing
Manufacturing: semiconductor manufacturing facilities, marking initiative is evident through:
a significant milestone for the country’s
Catalyst for technology and machining sectors. These Enhanced Funding and Incentives:
strategic developments are poised to reshape
A 130 percent increase in funding in the 2024
India’s position in chip manufacturing and
Union Budget, with fiscal incentives covering
Machining technology, presenting vast opportunities for 50 percent of the project cost for setting up
the machining industry.
semiconductor fabs. India aims to generate over
300,000 jobs in the semiconductor industry by
Industry Growth Approved on February 29, these state- 2026.
of-the-art semiconductor units include a
Semiconductor Fab with a 50,000 wfsm Semiconductor Market Growth:
capacity in Dholera, Gujarat, a Semiconductor India’s semiconductor market is projected to
India’s semiconductor manufacturing industry ATMP Unit in Morigaon, Assam, and a
plays a pivotal role in driving growth in Semiconductor ATMP Unit for Specialized Chips reach US$100.2 billion by 2032, presenting
the machining sector, forming a symbiotic in Sanand, Gujarat. significant opportunities for the machining
relationship crucial for precision manufacturing. industry to meet the escalating demand for
Machining processes are integral to creating semiconductor components.
the intricate structures of semiconductor IMPACT ON THE Focus on EVs and Technological
chips, which are the foundation of modern MACHINING INDUSTRY Advancements:
technology. This interdependence highlights
how advancements in one sector often spur The approval of these semiconductor facilities is The rise of electric vehicles (EVs) in India will
growth opportunities in the other. expected to have several significant impacts on drive demand for semiconductors in critical
the machining industry: fields like safety and electrification, providing
opportunities for machining companies to
In recent years, the demand for semiconductors
has surged due to the rapid expansion of Job Creation and Employment produce components tailored for EV-related
technology and widespread adoption of smart Opportunities: semiconductor applications.
devices. However, this increased demand The facilities are projected to generate
has strained the semiconductor supply chain, 20,000 direct advanced technology jobs and
causing disruptions that impact various approximately 60,000 indirect jobs, benefiting India is positioning itself as
industries, including machining. Shortages and both the machining and semiconductor sectors. a key player in the global
delays in the global semiconductor supply chain semiconductor value chain,
directly affect the availability of components Increased Demand for Machining and machining businesses can
essential for machining equipment, potentially Services: capitalize on this momentum
leading to production inefficiencies. The operationalization of these semiconductor by aligning their services
units will lead to a surge in demand for and products to meet the
Furthermore, fluctuations in semiconductor machining services and equipment, particularly evolving needs of the
prices pose additional challenges for machining for producing components for various semiconductor manufacturing
businesses. As semiconductor prices rise due semiconductor chips. sector. The approval and
to supply constraints, machining companies establishment of these three
may face increased costs for equipment and Expansion of Machining Markets: new semiconductor units in
components, affecting their competitiveness in India’s strategic positioning as a global hub India signify a monumental
the market. for chip manufacturing will expand machining leap forward for the
markets, offering new opportunities for machining industry.
supplying components and services to the
semiconductor industry.

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