Anyone who wants to paint a pessimistic picture may be inclined these days to regard globalization as a failure. The Ukraine war, for example, has made clear the problems that can result from dependencies. Before that, the Corona crisis made clear that global supply chains, perfected within years, are fragile. This was made very clear by the semiconductor shortage that is still rampant worldwide. For this reason, more and more countries are now focusing on independent chip production. In addition to the EU and the USA, India has now also announced an extensive project for national chip production.
Total investment of 10 billion US dollars
The fact that the second most populous country in the world is serious about its own chip production is already clear from the investment sum. A total of 10 billion US dollars is to be invested in the project to build semiconductor factories. India is thus creating a serious counterpart to the so-called European Chips Act, which for its part is to ensure the expansion of chip production in the EU. One thing in particular is clear from India’s plans: the country wants to make its position as a technology location clear. Since many skilled workers from the country go to the West, the semiconductor project could be seen by many Indians as an alternative to a career in the USA or Europe. After all, the construction of the first factory, in which Intel is also to be involved, is already expected to create 1,500 new jobs.
Not just government subsidies
The India Semiconductor Mission (ISM) is providing 10 billion U.S. dollars for the project from the government side. The fact that this is not only of state interest, but also sounds extremely exciting for the private sector, is made clear by the investments of private companies. Among others, a joint venture in which the well-known Chinese chip manufacturer Foxconn is also involved is to provide up to 20 billion U.S. dollars in support. If the plan works out, India is likely to establish itself as a high-tech location that will play an even greater role on the world market.