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Global technology markets are evolving rapidly, and India has emerged as a prominent player on this landscape. India’s electronics consumption is projected to hit an astounding $300 billion by 2026, with semiconductors accounting for about $80 billion of this. This growth trajectory reflects India’s position as the fastest-growing electronics market worldwide. Notably, these numbers comprise around 8% of global demand and 7% of India’s GDP.
It is against this backdrop that Micron, an American semiconductor company, has announced a significant investment in India. The investment has the potential to accelerate India’s journey towards economic development, help the country achieve self-reliance in technology, and foster technological sovereignty.
Job creation and skill development: One of the primary benefits of Micron’s investment in India will be the creation of high-value jobs. With its state-of-the-art semiconductor manufacturing facilities, Micron will not only hire top-tier talent but also collaborate with local educational institutions, fostering the development of skilled professionals in microelectronics. This transfer of knowledge and expertise is crucial to nurturing indigenous innovation and allowing homegrown technology companies to flourish.
- Impact on the Indian economy: Micron’s investment will have a ripple effect on the Indian economy, generating a positive impact in various ancillary sectors. The semiconductor industry relies on a complex network of suppliers, logistics and support services. As a result, small and medium businesses in India will also experience growth, leading to increased economic activity and improved living standards.
- Catalysing innovation and technological excellence: Micron’s commitment to research and development (R&D) in India is poised to stimulate innovation and foster a culture of technological excellence. Collaborations with local research institutions and startups could catalyse breakthroughs in emerging technologies such as AI, Internet of Things (IoT), and 5G connectivity. The Indian tech ecosystem will reap substantial benefits from such partnerships.
- India’s position in the global semiconductor industry: The investment comes at a crucial juncture, when the world’s appetite for advanced computing solutions is growing rapidly, driven by new technologies such as AI and quantum computing. The investment will elevate India’s position in the global semiconductor industry, opening new avenues for growth and collaboration. The history of semiconductor design in India, which began when Texas Instruments established a design centre in Bangalore in 1985, bears testimony to the potential of India’s semiconductor manufacturing sector.
Nonetheless, it is essential to address potential challenges and ensure that Micron’s investment maximizes its intended benefits. Collaboration between the private sector and the government is crucial to tackle infrastructural hurdles, streamline bureaucratic processes, and strengthen the talent pipeline. With concerns about access to capital mitigated to a large extent by support from the central and state governments, the only potential constraint is a lack of quality human capital. To that end, policymakers must remain proactive in fostering an environment conducive to innovation, research and development.
Scepticism
As with any major investment, there will be sceptics who question the benefits of Micron’s decision. However, it is important to remember past success stories that have transformed regions and industries in India. For instance, the automotive manufacturing industry in Gurgaon and in Sriperumbudur near Chennai completely changed their landscapes, creating modern centres of manufacturing excellence where they were once sleepy villages.
Today, India is an acknowledged leader in chip design, and premier institutes such as IISc, IITB, and IITG have their own R&D fabs. Micron’s decision to invest is strategic when seen against the backdrop of the planned collaboration between the US and India in critical and emerging technologies (ICET). As the wheels of progress continue to turn, India’s transformation into a leading technology hub appears to be an increasingly tangible reality.
The author is CEO and president, Indian Electronics and Semiconductor Association.
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