US-based semiconductor company Lam Research will invest ₹10,000 crore in India, Union Minister for Railways, Electronics, and IT Ashwini Vaishnaw announced on Tuesday. Last year, Lam Research had already signaled its commitment to India by expanding its global chip fabrication equipment supply chain to include the country.
"One more milestone in our semiconductor journey: Lam Research announces a major investment of over ₹10,000 crore in India," Minister Vaishnaw posted on X (formerly Twitter). He also described it as a "big vote of confidence" in Prime Minister Narendra Modi’s semiconductor vision.
In 2023, Lam Research pledged nearly ₹241 crore in software licenses to upskill 2,800 students in collaboration with the Indian Semiconductor Mission (ISM) and the Indian Institute of Science (IISc). This initiative aims to create a future-ready workforce in the semiconductor industry.
India’s Growing Semiconductor Manufacturing Base
Establishing a semiconductor manufacturing base has been a key part of the ‘Make in India’ initiative, which the country has been striving toward for over six decades. With the launch of the India Semiconductor Mission (ISM) and the approval of five major projects, the sector is gaining significant momentum. These projects include:
✅ Micron’s semiconductor facility
✅ Two projects by Tata Electronics
✅ One project by CG Power
✅ One project by Keynes
This marks a significant step toward building a real semiconductor manufacturing base in India.
India’s Semiconductor Market Outlook
According to the Indian Electronics and Semiconductor Association (IESA), India’s semiconductor market is projected to reach $103.4 billion by 2030, supporting the country’s $400 billion electronics industry.
The Indian government’s targeted incentives for fabrication facilities (Fabs) and Outsourced Semiconductor Assembly and Testing (OSATs), coupled with increased R&D investments and collaborative industry initiatives, are driving this sector forward.
Over the past year, IESA member companies have committed over $21 billion in investments, further strengthening India’s semiconductor ecosystem.
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